TA: Why Ethereum Is Attractive On Dips Despite Slow Rise Towards $2K
Ethereum traded to yet another all-time high at $1,950 against the US Dollar. ETH price is correcting gains, but it is likely to remain strong above $1,900 and $1,880.
- Ethereum is following a bullish path and it climbed to a new all-time high at $1,950.
- The price is now trading well above $1,900 and the 100 hourly simple moving average.
- There is a key rising channel forming with support near $1,910 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could dip further, but the bulls are likely to remain active near $1,880.
Ethereum Price Remains In Uptrend
Ethereum remained well bid above $1,850 and it extended its upward move. The price gained momentum above the $1,900 level and it even surpassed $1,920.
It traded to a new all-time high at $1,950, but there was no test of the $2,000 level. The price is currently correcting lower and trading below $1,920. It is testing the $1,910 support and the 23.6% Fib retracement level of the recent increase from the $1,734 swing low to $1,950 high.
Source: ETHUSD on TradingView.com
There is also a key rising channel forming with support near $1,910 on the hourly chart of ETH/USD. On the upside, ether is facing resistance near the $1,950 level. The next hurdle could be $1,960 and the channel upper trend line.
A clear break above the channel resistance could open the doors for a push towards the $1,980 level. The main target for the bulls is still near the $2,000 level.
Dips Supported in ETH?
If Ethereum fails to extend its rise above the $1,950 level, there could continue to move down. The first major support is near the $1,910 level and the channel trend line. The next key support is near the $1,880 level.
Any more losses might lead the price towards the $1,850 support zone. It is close to the 50% Fib retracement level of the recent increase from the $1,734 swing low to $1,950 high. The 100 hourly simple moving average is also near the $1,850 zone. A downside break below the $1,850 support might call for a drop towards the $1,780 level.
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now close to the 50 level.
Major Support Level – $1,880
Major Resistance Level – $1,950