in

ETH V-shaped recovery seems unsustainable amid looming correction

ETH/USD price chart


advertisement


  • Ethereum recovered extensively but failed to clear the resistance at $1,840.
  • A correction from the V-shaped recovery would seek support at $1,700 and $1,550, respectively.

Ethereum shot up on Monday, extending the recovery staged from the anchor at $1,550. The rally was supported by news that Visa has added support for cryptocurrency transactions due to increasing customer demand. Ethereum stood out because the USDC digital currency chosen executes on its blockchain.

Advertisement

Student Coin

Several technical hurdles were pushed into the rearview mirror with Ethereum eying highs past $1,800. A break occurred above this critical resistance zone but a weekly high formed around $1,840, cutting the recovery mission.

At the time of writing, Ether is pivotal at $1,800, but the least resistance path appears to be on the downside as technicals gradually flip negative. Overhead pressure is likely to increase at $1,800, forcing Ether to seek refuge toward the confluence support at $1,700, formed by the 50 Simple Moving Average (SMA) and the 200 SMA on the 4-hour chart.

ETH/USD 4-hour chart

ETH/USD price chart
ETH/USD price chart by Tradingview

A comprehensive look at the 4-hour chart illustrates Ethereum printing a V-shaped recovery. Note that a comeback such as this not easy to sustain and often leads to a correction. The Moving Average Convergence Divergence (MACD) brings to light a bullish front that is currently getting exhausted.

The indicator is in the positive region but has slowed down the momentum. Traders should be on the lookout for MACD line (blue) crossing under the signal line. The move will imply that it is time to sell the weekly top and speculate losses toward $1,700. If support at this area fails to hold, Ether may freefall toward last week’s anchor zone at $1,550.

Advertisement

Crypto vip telegram

Ethereum intraday levels

Spot rate: $1,795

Trend: Bearish

Volatility: Low

Support: $1,700 and $1,550

Resistance: $1,800 and $1,840

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

Student coin



Share on Facebook



Share on Twitter



Share on Linkedin



Share on Telegram



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

What do you think?

RioDeFi launches DeFi incubator to bring interoperable blockchain hub to Asia

RioDeFi launches incubator to bring interoperable blockchain hub to Asia » CryptoNinjas

Kraken's Dan Held Says Arrival of Institutional Herd Could Ignite Intense Bull Market

Kraken’s Dan Held Says Arrival of Institutional Herd Could Ignite Intense Bull Market