Ethereum has become volatile and still residing inside the range of $2,400 to $1,700 price area. Ethereum is facing resistance around $2,400 psychological event area. What is next? The bears to regain momentum 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.
July 28, 2021, | AtoZ Markets – Ethereum price climbed today morning during the Asian session against the U.S. Dollar. The bulls have regained momentum after bouncing from $1,700 to $1,800 support level and pushed the price upside impulsively, and reached $2,300 to $2,400 resistance area again. ETH is currently trading around $2,300 price area and trying to push downside. As per the current price action, the price may face strong support at the dynamic level on the intraday chart in the coming days.
Ethereum Facing Resistance as the Event Level Working Strongly
Ethereum is currently residing near $2,300 price area and trying to push lower. However, the price also facing resistance at the Bollinger Bands upper band on the daily chart.
Image: ETH 4 Hour Chart
According to the 4-hour chart, Ethereum is facing resistance and currently trading around $2,300 price area. As per the current price action, if the price can have an impulsive 4-hour bearish candle close below the dynamic level, the bears may push the price down towards $2,100 to $2,000 price area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upward. However, the bears may regain momentum if the price can break below the dynamic level in the process. Along with this, the Stochastic Oscillator lines are currently residing below the overbought level 80 and had a bearish crossover. It indicates that the bears may regain momentum in the days ahead.
ETH May Retrace Downside
According to the daily chart, Ethereum is facing resistance, but the bulls are still optimistic. As per the current scenario, the price may retrace downside towards $2,100 to $2,000 price area in the process. So, if the price retraced down towards $2,100 to $2,000 support level and bounced higher with an impulsive bullish candle, the bulls may sustain the bullish pressure towards $2,300 to $2,400 price area as a first target. The second target will be $2,550 to $2,600 price area if the price can break above $2,300 to $2,400 resistance area in the coming days.
Image: ETH Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may pull the price down as a mean reversion. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the days ahead.
To conclude, after an impulsive bullish momentum, the price requires a downward retracement at least towards the dynamic level on the daily chart. As the overall bias is still bullish, there is a high chance that ETH may continue further higher after a downside retracement in the coming days.