Ethereum sustains its bullish bias and hit an all-time high yesterday during the New York session. Ethereum hit a record high of $3,600 key price area. Will ETH climb further upward 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.
May 7, 2021, | AtoZ Markets – Ethereum declined today morning during the Asian session against the U.S. Dollar. Ethereum is currently trading around $3,470 price area and trying to push upside. After bouncing from $3,150 to $3,200 support level, the bulls pushed the price higher quite impulsive and hit $3,600 key area. As per the current price action context, the price may revert back to the mean on the daily chart in the coming days.
Ethereum Hit a Record High as the Investors Are Optimistic
Ethereum is currently residing near $3,470 area and trying to climb further. However, the price is facing support at the dynamic level of 20 EMA on the intraday chart.
Image: ETH 4 Hour Chart
According to the 4-hour chart, Ethereum hit a record high and currently trading around $3,470 area. As per the current price action, if the price push higher and breaks above $3,500 to $3,600 key resistance area with an impulsive bullish candle, the bulls may continue the bullish trend towards $3,800 to $3,900 area in the coming days. On the contrary, if the price can break below the dynamic level with an impulsive bearish candle close, the bears may push the price down towards $3,200 to $3,150 area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price higher. However, the bears may regain momentum if the price can break below the dynamic level of 20 EMA in the days ahead. Also, the MACD lines are currently residing above the 0.00 level and had a bearish crossover. It indicates that the bears may regain momentum in the coming days.
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 scenario, the price may retrace downside towards $3,000 to $2,800 support area in the days ahead. So, if the price retraced towards $3,000 to $2,800 support level and bounced upside with a daily bullish candle, the bulls may recover higher towards $3,500 to $3,600 area as a first target. The second target will be $3,800 to $3,900 area if the price can break above $3,500 to $3,600 area in the process.
Image: ETH 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 down as a mean reversion. Besides, the Kijun line and the Tenkan line 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. As the overall bias is still bullish, there is a high chance that the bulls may continue the bullish bias further in the coming days.