The price of Ethereum (ETH / USD) fell to the minimum of $1,712. This level was tested on June 22 and June 26. Now ETH has again reached this area, it could be forming a triple bottom technical pattern.
The psychological level of $ 2,000 has failed to offer support to Ethereum. The bearish force continued to push below this level until the price found support at 1712.
We should expect a consolidation above $ 1,700. If the price remains above this level, we believe that there could be a technical rebound with targets towards the 21 SMA. At this level, a bearish pressure line converges.
If Ethereum manages to break out of this bearish pressure line and consolidates above the 1,875 2/8 murray zone, there could be a bullish momentum to the 200 EMA (2,059) zone and psychological level.
At the fundamental level, cryptocurrency traders began to sell Ethereum and Bitcoin and other currencies due to fear of the continued rise in inflation that would prompt the FED to withdraw its quantitative easing programs. This fact keeps the market under uncertainty and could limit the rise of the Ethereum in the short term.
According to the chart, we have drawn three circles in the 1,712 area, which has rebounded on previous occasions. Will it be a good opportunity to buy again at these levels? We must expect it to remain above the 1,875 area of 2/8 of murray for a bullish move to the 200 EMA zone.
Our recommendation is to buy above 1,712 according to the triple bottom pattern, targeting 1,858 (21 SMA) and 2,058 (200 EMA).
Support and Resistance Levels for July 20 - 21, 2021
Resistance (3) 2,063
Resistance (2) 1,965
Resistance (1) 1,841
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Support (1) 1,663
Support (2) 1,437
Support (3) 1,096
The material has been provided by InstaForex Company - www.instaforex.com