Ethereum Could Correct Gains, Why Dips Remain Attractive Near $530

Ethereum Could Correct Gains, Why Dips Remain Attractive Near $530

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Ethereum started a strong surge above the $500 resistance against the US Dollar. ETH price traded as high as $562 and it is currently correcting gains.

  • ETH price traded to a new multi-month high near $562 against the US Dollar.
  • The price is currently correcting lower below $550, but it is well above the 100 simple moving average (4-hours).
  • There is a major bullish trend line forming with support near $495 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair could correct lower, but dips are likely to remain attractive near $530 or $510.
  • This past week, bitcoin and ethereum gained bullish momentum above $18,000 and $500 respectively against the US Dollar. ETH price surged further above the $520 resistance and settled well above the 100 simple moving average (4-hours).

    The upward move was such that there was a break above a key connecting resistance trend line at $508 on the 4-hours chart of ETH/USD. The pair gained pace and traded above the $540 and $550 levels.

    Ether price traded to a new multi-month high near $562 and recently started a short-term correction. It traded below the $550 level, and broke the 23.6% Fib retracement level of the recent upward move from the $503 swing low to $562 high.

    Ethereum Price

    Source: ETHUSD on TradingView.com

    The first key support on the downside is near the $532 and $530 levels. It is close to the 50% Fib retracement level of the recent upward move from the $503 swing low to $562 high.

    On the upside, the $555-$560 zone is a key hurdle for the bulls. A successful break above the $560 resistance might start another rally. In the stated case, ether price is likely to rally towards the $580 and $585 levels.

    If Ethereum fails to extend its rise above $560, it could correct lower. The first major support zone sits near the $532 and $530 levels.

    If there are more losses, ether price could move down towards the $510 support zone. There is also a major bullish trend line forming with support near $495 on the same chart, where the bulls are likely to take a strong stand.

    Technical Indicators

    4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.

    4 hours RSI – The RSI for ETH/USD is correcting lower from the 80 level.

    Major Support Level – $530

    Major Resistance Level – $560

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    Source: icryptodesk.com

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    Parabolic rally ‘a real possibility’ after Ethereum price surges to $547

    Parabolic rally ‘a real possibility’ after Ethereum price surges to $547

    The price of Ether (ETH), the native cryptocurrency of Ethereum, has surpassed $547. Following the breakout, traders are pinpointing several key resistance levels in the near term.

    In the short term, traders generally foresee $600 as the major resistance area for Ether as it marked the beginning of a bearish trend starting in May 2018. As such, $600 could act as an area of interest for sellers.

    But, traders also believe that if Ether surpasses $600, it would likely enter the $700 to $900 range. Above it, there is little resistance until the all-time high.

    The Ethereum network has seen numerous catalysts come into play in recent months.

    First, the Ethereum 2.0 network upgrade is progressing, as a large number of Ether continues to flow into the deposit contract address.

    Ethereum 2.0 is a significant upgrade to move Ethereum from the proof-of-work (PoW) consensus algorithm to the proof-of-stake (PoS) algorithm. Essentially, it removes miners from the network to optimize the settlement of transactions.

    Second, on-chain data show that whales are continuing to accumulate Ether. This trend coincides with a drop in Ether exchange reserves, particularly as more holders deposit the digital asset to the Eth2 deposit contract. Researchers at Santiment wrote when Ether initially broke out of $500:

    “Following in $BTC’s footsteps, $ETH has hit a 29-month high of $509. June 21, 2018 was the last time the price was this high for the #2 market cap asset. #Ethereum’s top 10 holders rising, combined with coin supply on exchanges, have fueled this rally.”

    The strong fundamental catalysts for Ethereum and the favorable technical structure for Ether has traders optimistic about the near term price trend of Ether.

    Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said a pullback at $600 is likely. But, above it, the trader said the road towards $900 to $1,000 is open.

    A pseudonymous trader known as “Rookie” similarly said that ETH to $700 by the year’s end is likely. ETH has seen a parabolic uptrend since July 2020, raising the probability of a prolonged rally bridging over to 2021.

    During the 2017 rally, when Bitcoin neared $20,000 across major exchanges, altcoins were relatively stagnant. Ether and other major cryptocurrencies saw explosive price movements in January 2018, after BTC had peaked.

    Ether seeing renewed momentum in 2021 would go in line with the trend it saw in the 2017 post-halving cycle. Although there is little historical data to suggest that Ether and altcoins will follow the same trend as three years ago, the narrative of a January 2021 altcoin rally remains strong.

    For Ether to see a prolonged uptrend, it would first need to reclaim the $600 resistance level as many analysts view this level as the biggest near term threat.

    Source: cryptonewest.com

    Author: by admin


    Ethereum Could Correct Gains, Why Dips Remain Attractive Near $530

    Ethereum Could Correct Gains, Why Dips Remain Attractive Near $530

    Ethereum started a strong surge above the $500 resistance against the US Dollar. ETH price traded as high as $562 and it is currently correcting gains.

  • ETH price traded to a new multi-month high near $562 against the US Dollar.
  • The price is currently correcting lower below $550, but it is well above the 100 simple moving average (4-hours).
  • There is a major bullish trend line forming with support near $495 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair could correct lower, but dips are likely to remain attractive near $530 or $510.
  • This past week, bitcoin and ethereum gained bullish momentum above $18,000 and $500 respectively against the US Dollar. ETH price surged further above the $520 resistance and settled well above the 100 simple moving average (4-hours).

    What cryptocurrency will become the main one in a year?
    BitcoinEthereum

    The upward move was such that there was a break above a key connecting resistance trend line at $508 on the 4-hours chart of ETH/USD. The pair gained pace and traded above the $540 and $550 levels.

    Ether price traded to a new multi-month high near $562 and recently started a short-term correction. It traded below the $550 level, and broke the 23.6% Fib retracement level of the recent upward move from the $503 swing low to $562 high.

    Ethereum Price

    The first key support on the downside is near the $532 and $530 levels. It is close to the 50% Fib retracement level of the recent upward move from the $503 swing low to $562 high.

    On the upside, the $555-$560 zone is a key hurdle for the bulls. A successful break above the $560 resistance might start another rally. In the stated case, ether price is likely to rally towards the $580 and $585 levels.

    If Ethereum fails to extend its rise above $560, it could correct lower. The first major support zone sits near the $532 and $530 levels.

    If there are more losses, ether price could move down towards the $510 support zone. There is also a major bullish trend line forming with support near $495 on the same chart, where the bulls are likely to take a strong stand.

    Technical Indicators

    4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.

    4 hours RSI – The RSI for ETH/USD is correcting lower from the 80 level.

    Major Support Level – $530

    Major Resistance Level – $560

    This post was originally published on www.newsbtc.com

    Source: www.cryptoalphanews.com

    Author: cm_team


    Ethereum Could Correct Gains, Why Dips Remain Attractive Near $530


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