Ethereum Bounces Back Strongly After $2,871 Support Rejection

Wednesday, ETH, the native coin Ethereum Blockchain experienced significant rejection at the $2,871 resistance level. Since this rejection, Ethereum’s price has risen significantly by over 9% and is showing signs of further upside.

At the time of writing, price is still showing strong signs of rising towards the 100-day simple moving average (SMA) and trendline on both the 4-hour and 1-day time frames. ETH price is currently trading around $3,116 and has increased about 0.47% in the past 24 hours.

Take a closer look at the Ethereum chart using the following technical indicators:

100-day moving average and trendline: As seen in the image below, the price of ETH is currently trending between the 100-day simple moving average and the trendline. trend line, still trading below these two indicators. This means that at some point, the price of Ethereum may reverse and continue its downward movement.

RSI Indicator: Observing the chart using the Relative Strength Index Indicator (RSI) shows that the RSI signal line is trending above the 50 line, which indicates that the price can still go up. It shows strongly. can be seen in the chart.

4-hour MACD indicator: If you look closely at the 4-hour MACD indicator, you will notice that the MACD histogram has moved above the zero line. Also, the MACD line and the signal line cross and are heading towards the zero line. This suggests that prices may continue to rise until they continue to rise. Possibility of reversal.

Final thoughts on moving ETH

Based on Ethereum’s previous movement, there are two resistance levels at $3,250 and $3,355 and a support level at $2,819. Ethereum price is rising, so if it manages to break out of the $3,250 resistance level, it could continue moving further towards the $3,355 resistance level.

Conversely, if Ethereum fails to break out of the previous resistance level, it could hold and start descending towards the previous support level at $2,819. If ETH manages to break through this support level, it could fall further and make new lows.

Ethereum
ETH trading at $3,118 on 1D chart | Source: ETHUSDT tradingview.com

Featured image from iStock, chart from Tradingview.com

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