Ethereum has become volatile and corrective after hitting an all-time high of $1,950 key area. Ethereum dropped below $1,920 psychological area. Will ETH decline further downward in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
February 19, 2021, | AtoZ Markets – Ethereum price dropped today morning during the Asian session against the U.S. Dollar. Ethereum is currently trading around $1,915 area and trying to push lower. After bouncing from the uptrend line, which is around $1,730 to $1,750 area, the bulls pushed the price upward quite impulsively and reached a record high of $1,950 area. As per the current price action, the price may retrace downside towards the dynamic level on the daily chart in the coming days.
Moreover, the Ethereum strike above $1,900 to another record-breaking high, and this breakout mirrors a solid 45% makings for just February singly. Apart from Ethereum following Bitcoin’s upside bias, the move has been partially powered by the report that BlackRock is thinking about future cryptocurrency ventures and Microstrategy $900 million convertible notes offer to purchase more BTC.
Ethereum Dropped Below as the Price Requires a Downside Retracement
ETH is currently residing near $1,915 area and trying to decline further. However, Ethereum has created a bearish two-bar reversal pattern on the intraday chart.
Image: Ethereum 4 Hour Chart,
According to the 4-hour chart, Ethereum dropped below and currently trading around $1,915 area. As per the current scenario, if the price can have an impulsive bearish candle close below the last candle’s low, the bears may sustain the bearish pressure towards $1,850 to $1,830 support area in the process. So, if the price retraces towards $1,850 to $1,830 support area and bounced upside with a 4-hour bullish candle, the bulls may regain momentum and recover higher towards $1,920 to $1,950 area again in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as a strong support to push the price upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead.
ETH May Revert Back to the Mean
According to the daily chart, Ethereum dropped below and currently residing near $1,915 area. As per the current price action, if the price can have a daily bearish candle close below $1,950 to $1,920 area, ETH may decline towards $1,750 to $1,730 area in the coming days. So, if the price declines towards $1,750 to $1,730 support area and bounced upside with an impulsive bullish candle, the bulls may sustain the bullish trend towards $1,920 to $1,950 area as a first target. The second target will be $2,150 to $2,200 area if the price can break over $1,920 to $1,950 area in the process.
Image: Ethereum Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price. So, it may pull the price down as a mean reversion. Also, the MACD lines are currently residing above the 0.00 level and may have a bearish crossover. Besides, the histogram has created a bearish divergence. Both indicate that the bears may regain momentum in the days ahead.
To conclude, as long as the price residing over $1,730 to $1,750 support level, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days.