TA: Ethereum Dips Below $1,800, Why Bulls Are Still In Control - SMARTNAIRA

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Tuesday, 9 March 2021

TA: Ethereum Dips Below $1,800, Why Bulls Are Still In Control

Ethereum climbed further above the $1,800 and $1,850 resistance levels against the US Dollar. ETH price is correcting gains, but it is likely to find bids near $1,725.

  • Ethereum extended its rise and traded to a new monthly high above $1,875.
  • The price is now trading below $1,800, but it is still well above the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $1,775 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to remain stable above the $1,725 and $1,750 support levels in the near term.

Ethereum Price Remains Supported

Ethereum is following a bullish path and it was able to clear the $1,850 resistance, similar to bitcoin. ETH traded to a new monthly high near $1,880 and settled well above the 100 hourly simple moving average.

Recently, it corrected lower and traded below the $1,825 support level. There was a break below the 23.6% Fib retracement level of the upward move from the $1,649 swing low to $1,882 high. Ether price is now trading below $1,800, but it is still well above the 100 hourly simple moving average.

It is testing the $1,765 support zone. There is also a key bullish trend line forming with support near $1,775 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the upward move from the $1,649 swing low to $1,882 high.

Ethereum Price

Source: ETHUSD on TradingView.com

On the upside, the $1,800 level is a short-term resistance. The first major resistance is near the $1,825 level. A clear break above the $1,825 and $1,850 levels could open the doors for a move towards the $1,880 and $1,900 levels.

Dips Supported in ETH?

If Ethereum fails to resume higher above the $1,800 and $1,825 resistance levels, it could correct further lower. The first key support is near the trend line at $1,865.

The main support is now forming near the $1,725 level and the 100 hourly simple moving average. If there is a downside break below the $1,725 support, ether price might decline towards the $1,650 level.

Technical Indicators

Hourly MACD The MACD for ETH/USD is slowly gaining pace in the bearish zone.

Hourly RSI The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,725

Major Resistance Level – $1,825



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