- Ethereum reverses the previous day’s pullback from 21-day SMA.
- Upbeat RSI, MACD conditions favor ETH bulls planning another battle with key SMAs.
- ETH/USD bears need validation from $2,330 while rising trend line from February acts as the key upside hurdle.
Ethereum (ETH/USD) price picks up bids to reverse the previous day’s losses around $2,540 during Monday’s European session. In doing so, the ETH/USD pair reverses the previous day’s pullback from the 21-day Simple Moving Average (SMA).
Given the recent improvements in the 14-day Relative Strength Index (RSI) line and a looming bullish cross from the Moving Average Convergence and Divergence (MACD) indicator, the ETH buyers are likely to approach the key upside hurdle.
ETH/USD: Daily chart signals tough ride bulls
Source: Tradingview
Ethereum is once again testing the 21-day SMA at around $2,560 after failing to break through it yesterday. However, positive signals like RSI above 50, an upcoming bullish MACD cross, and overall momentum suggest that Ethereum may overcome this immediate resistance.
The real challenge for bulls lies at the 200-day SMA around $2,660 and an upward trend line from February close to $2,820, which both act as tough resistance points. A daily close above $2,660 could help Ethereum break through these barriers and target the $2,850 range.
Alternatively, the $2,500 and the $2,400 round figures could restrict short-term downside of the ETH/USD pair before the lows marked in the last week and mid-May, respectively near $2,385 and $2,330. Adding strength to the $2,330 support level is an upward-sloping trend line from early April.
ETH/USD: Four-hour chart signals tough ride bulls
Source: Tradingview
On the four-hour chart, ETH/USD remains above a month-old ascending support line near $2,440 and is approaching the 100-bar SMA at $2,565. However, buyers should be cautious unless prices stay below a week-long falling resistance line around $2,600, before targeting the resistance levels on the daily chart.
If ETH breaks the monthly support line at $2,440, sellers may quickly target the key trend line support from early April, at $2,330 at the latest. Below that, the next bearish targets for the Ethereum would be the psychological level of $2,000 and the early May swing high around $1,880.
To sum up, ETH/USD is gaining upside momentum, but the path to break a multi-month resistance line remains challenging for the bulls.
