Ethereum Consolidates Above $1,600 Support as It Poises for a Rebound

Aug 01, 2022 at 10:30 // Price
Coin Idol
There is a possibility of further upside

Ethereum (ETH) is in a sideways movement as the trend reaches the high of $1,784.

For the last five days, the Ether price has been in a sideways movement as the bears form a strong resistance at the recent high. Today, the largest altcoin has fallen back above the support of $1,600 while making an upward move to the previous highs. 

If the bulls break the high of $1,700, the altcoin will rise to the highs of $2,000 and $2,500. There is a possibility of further upside if the bulls retest the $1,700 resistance zone. In the meantime, the upside is doubtful as there are small, indecisive doji candles. The candlesticks indicate that buyers and sellers have reached a phase of indecision. The largest altcoin is trading at $1,676.63 at the time of writing.

Ethereum indicator analysis

Ether is at level 63 of the Relative Strength Index for period 14. Ether is trading in the bullish trend zone, while it is facing rejection at the high of $1,700. The altcoin is below the 80% area of the daily stochastics. This indicates that the market is in a bearish momentum. The 21-day line SMA and the 50-day line SMA are up, indicating an uptrend. 


Key Resistance Zones: $2,500, $3,300, $4,000

Key Support Zones: $2,000, $1,500, $1,000

What is the next direction for Ethereum?

Ethereum is still fluctuating below the recent high as the cryptocurrency finds support above $1,600. It is likely that Ether will continue its uptrend if the price breaks the resistance at $1,784. Meanwhile, the July 19 uptrend has shown a candle body testing the 50% Fibonacci retracement level. The retracement suggests that ETH will rise to the 2.0 Fibonacci extension level or $2,289.61.


Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing funds.

Show comments(0 comments)