Ethereum has become volatile and corrective after rejecting $750 to $740 key resistance level. Ethereum is facing resistance around $750 psychological area. Bears to regain momentum in the days ahead? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
January 1, 2021, | AtoZ Markets - Ethereum price decline today morning during the Asian session against the U.S. Dollar. After bouncing from $540 to $550 support area, the bulls pushed the price upward quite impulsive with 800 pips of a bullish gap. Currently, trading activities have been including somewhat over the north upper channel trend line beneath $750 market esteem. A powerful rejection around the value point referenced formerly may eventually put the cryptocurrency trade to begin seeing selling pressure. Meantime, the market value around $680 to $670 area will fill in as the significant price level against any probable abrupt descending movement. Ethereum is currently trading around $740 area and trying to recover higher. As per the current price action, ETH may fill up the bullish gap in the coming days.
Ethereum Facing Resistance as the Price May Fill-up the Bullish Gap
Ethereum is currently residing near $740 area and trying to push upside. However, the price is still residing above the dynamic level of 20 EMA on the intraday chart.
Image: Ethereum 4-Hour Chart
According to the 4-hour chart, Ethereum facing resistance and currently trading around $740 area. As per the current price action, if the price can have an impulsive bearish candle close below $750 to $740 resistance level, the bears may regain momentum and decline towards $680 to $670 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 Stochastic Oscillator lines are currently residing below the overbought level 80 and gradually sloping downside. It indicates that bears may regain momentum in the days ahead.
ETH May Revert Back to the Mean
According to the daily chart, Ethereum facing resistance as the price may require a downside retracement. As per the current scenario, if the price can have an impulsive bearish daily candle close below $750 to $740 area, the bears may retrace downside towards $620 to $600 area in the process. So, if the price retraces towards $620 to $600 area and bounced upside with an impulsive bullish daily candle, the bulls may regain momentum and recover upward towards $740 to $750 area again in the coming days.
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, after an impulsive bullish momentum, the price requires a downside retracement before sustaining the bullish trend. A daily close will help to identify the definite momentum in the coming days.