Ethereum has become impulsive and non-volatile after breaking over $1,420 to $1,450 resistance level. Ethereum hit a record high of $1,700 key area. Will it climb further upside 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 5, 2021, | AtoZ Markets – Ethereum rose today morning during the Asian session against the U.S. Dollar. Ethereum is currently trading around $1,645 area and trying to push higher. After an extended period of volatility, the bulls found support around $1,200 to $1,250 event area and strike higher. As per the current price action, the price may face strong resistance around $1,660 to $1,700 area in the coming days.
Moreover, the proponent of Ethereum and DeFi, Ryan Sean Adams, has pulled attention to how exalted gas expenses compared with the current Ether value could really be a bullish sign. Besides, referring to the current week’s Grayscale research paper ‘Esteeming Ethereum’ the Bankless reporter asserted that Ethereum is “really getting less expensive” from a value to deal proportion viewpoint.
Ethereum Hit a Record High as Investors Are Optimistic
Ethereum is currently residing near $1,645 area and trying to recover further. However, the price had a bearish rejection after hitting $1,660 to $1,700 key area once.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum hit a record high and currently trading around $1,645 area. As per the current price action, if the price rejects $1,660 to $1,700 area again with an impulsive bearish candle, the bears may regain momentum and decline towards $1,450 to $1,420 event level in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upside. Therefore, the bears may regain momentum if the price can break below the dynamic level in the days ahead. Also, the MACD lines are currently residing over the 0.00 level and may have a bearish crossover. It indicates that the bears may regain momentum in the process.
ETH May Revert Back to the Mean
According to the daily chart, Ethereum hit a record high as the bulls are optimistic. As per the current price action, if the price rejects $1,660 to $1,700 area with an impulsive daily bearish candle close, ETH may retrace towards $1,450 to $1,420 support area in the process. So, if the price retrace down towards $1,450 to $1,420 area and bounced upside with a daily bullish candle, the bulls may sustain the bullish trend towards $1,660 to $1,700 area as a first target. The second target will be $1,850 to $1,900 area.
Image: Ethereum Daily Chart
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 pull the price downside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic in the coming days.
To conclude, Ethereum may continue the bullish trend further, but the price requires a downside retracement. A daily close will help to identify the definite momentum in the days ahead.