ETH Needs to Break This Level for A Sustained Rally

    Ethereum was up 25% in the past few days and seemingly poised to break above the descending resistance line formed since the ATH (all-time high) in November 2021.

    Daily chart

    Ethereum has reached an important resistance zone on the daily chart, formed by two descending resistance lines (yellow and orange) and the horizontal resistance level of $1,800 (red).

    On August 14, the bulls’ last attempt to bounce was unsuccessful. Since then, the price dropped again to a low of $1,420. The recent rise has now brought the bulls the opportunity to retest the resistance zone.

    Ahead of The Merge, the market was dominated by optimism and this will be amplified if the bulls can reclaim $2K. On the other hand, a rally is unlikely to happen if ETH fails to break out of this level. In turn, if there is a rally, the first solid support area will lie around $1,400.

    • Key Support Levels: $1650 & $1420
    • Key Resistance Levels: $1800 & $2100

    Daily Moving Averages:

    • MA20: $1581
    • MA50: $1660
    • MA100: $1490
    • MA200: $ 2.101
    ETH/USDT daily chart (Source: TradingView)

    ETH/BTC chart

    On the ETH/BTC chart, the ascending line (orange) is currently acting as a resistance. Besides, this is the third time in 50 days that the 14-day RSI has encountered resistance at the descending line (white) after reaching above 70. This is considered an overbought zone and due to the bearish divergence (red), it looks like the trend is slowly weakening.

    A reversal trend can be initiated when the price breaks and closes below 0.08 BTC. Next support, in this case, will likely be found at 0.073 BTC.

    • Key Support Levels: 0,08 & 0,073 BTC
    • Key Resistance Levels: 0,088 & 0,093 BTC
    ETH/BTC daily chart (Source: TradingView)

    (Reference: Cryptopotato)

    Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. 

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