Ethereum has become volatile and corrective after breaking above $1,700 to $1,720 psychological area. Ethereum facing resistance around $1,800 key level. Is this the end of the bullish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
February 12, 2021, | AtoZ Markets – Ethereum price fall today morning during the Asian session against the U.S. Dollar. Ethereum is currently trading around $1,765 area and trying to push lower. After bouncing from $1,500 to $1,520 support level, the bulls pushed the price upward quite impulsively and hit a record high of $1,835 area. As per the current price action context, the price may retrace towards the dynamic level of 20 EMA on the daily chart in the coming days.
Moreover, ascending gas expenses on the Ethereum blockchain is giving clients and developers a cause to worry. Over the previous year, Ethereum exchange charges have surged by more than 35,000%, and this has forced one online media token venture to close shop. As stated by BTC PEERS, the normal gas expense emaciated at more than $25 on February 5. However, as of the reported moment, the average exchange expense was had declined to $18.43. This is a tremendous spike when contrasted with a normal expense of $0.13 per year prior.
Ethereum Facing Resistance as the Investor’s Psychology Working Negatively
Ethereum is currently residing near $1,765 area and trying to decline. However, the price is still residing over the dynamic level on the intraday chart.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum facing resistance and currently trading around $1,765 area. As per the current scenario, if the price can have an impulsive 4-hour bearish candle close below $1,710 to $1,700 support area, the bears may regain momentum and push the price down towards $1,520 to $1,500 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, the bears may regain momentum if the price can break below the dynamic level in the process. Also, the MACD lines are currently residing above the 0.00 level and gradually sloping downward. It indicates that the bears may regain momentum in the days ahead.
ETH May Revert Back to the Mean
According to the daily chart, Ethereum facing resistance, but the overall bias is still bullish. As per the current price action, if the price can have an impulsive bearish candle close below $1,835 to $1,800 area, the price may retrace towards $1,520 to $1,500 area in the coming days. So, if the price retrace towards $1,520 to $1,500 area and bounced upside with a daily bullish candle, the bulls may sustain the bullish trend towards $1,800 to $1,835 area as a first target. The second target will be $1,980 to $2,000 key area if the price can break over $1,800 to $1,835 area in the days ahead.
Image: Ethereum Daily Chart
Furthermore, 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 pull the price down as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing over the dynamic level on the daily chart, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.