Ethereum, ETH / USD, recovered sharply after having formed a triple bottom in the zone of 1,710. The price has increased by more than 18. Another catalyst that gave the bullish momentum to ETH / USD was Elon Musk's announcement that Tesla would likely resume the Bitcoin payment option for its electric cars.
Now Ethereum has recovered to the psychological level of $ 2,000 and is located above the EMA of 200 in 4-hour charts. This could be good news as the price can consolidate above this level in the short term and could reach the zone of 2,500.
On the other hand, if Ethereum makes a correction, a drop is expected to the support zone of the SMA of 21 around 1,875. This level will give a new bullish impetus to reach the resistance and target of the market at $2,500.
In the chart, we can see that ETH has sharply broken a downtrend channel. Now it is holding above it, which could also be a sign of bullish strength in the short term.
As long as ETH / USD remains above the 21 SMA, there is a strong probability that the price will continue to rise, targeting 8/8 murray around 2500. Below 1,875, we should avoid buying as a consequence of market fear and uncertainty could push the price down towards the 1,710 and 1,500 support.
Support and Resistance Levels for July 23 - 26, 2021
Resistance (3) 2,291
Resistance (2) 2,173
Resistance (1) 2,110
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Support (1) 1,946
Support (2) 1,882
Support (3) 1,763
The material has been provided by InstaForex Company - www.instaforex.com