According to a 4-hour chart, Ethereum, ETH / USD, is trading above the SMA of 21. Yesterday in our article, we pointed out a technical pattern of the triple bottom in the $1,710 zone, you can review this article and get some data.
ETH has managed to sustain the level of 1,710. Since on three occasions it has found strong support in this area, we believe that while it remains above this level, the recovery of Ethereum could be favored towards the resistance zone of the psychological level 2,000 and the 200 EMA at 2,047.
With the so-called bottom of 1,710, will it be so strong for a new bullish wave until 2,500? We should expect a consolidation above the 2,047 level, where the EMA is located. Above this level, Ethereum could rise to the 4/8 murray zone around $2,500.
On the other hand, ETH is still facing downside risks while it is below the 200 EMA. So, we must be cautious and buy long-term, above $ 2,100 with targets up to 2,500.
The bullish outlook for Ether comes from the London fork. The update would implement four improvement proposals on the Ethereum blockchain. Ethereum could react to this improvement and investors could buy this cryptocurrency, but first the sentiment of the market must change to positive.
Our recommendation is to buy at current price levels above the 21 SMA, with targets at 2,047, 2,187 and 2,500.
Support and Resistance Levels for July 21 - 22, 2021
Resistance (3) 2,263
Resistance (2) 2,089
Resistance (1) 1,965
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Support (1) 1,777
Support (2) 1,663
Support (3) 1,597
The material has been provided by InstaForex Company - www.instaforex.com