- Ethereum price rebounds after brief pullback from yearly top, again approaching multi-month resistance.
- Overbought RSI, looming MACD bear cross underscore significance of the resistance line from November 2021.
- Highs marked since March 2024, immediate bullish channel’s top add to the upside filters.
- Sustained trading above key moving averages signals continuation of the upward trend.
Ethereum price (ETH/USD) gains 2.0% intraday while rising to $3,876 during Tuesday’s European session. In doing so, the second-largest cryptocurrency reverses the previous day’s pullback from the highest level in a year, activated due to the ETH’s failure to cross a downward-sloping resistance line from November 2021.
It’s important to note that overbought conditions in the 14-day Relative Strength Index (RSI), combined with an impending bearish crossover on the Moving Average Convergence Divergence (MACD) indicator, also contributed to Monday’s retreat from the key upside hurdle.
However, ETH/USD remains supported, as it continues to trade above important Moving Averages (MAs), while the mid-July breakout of a significant resistance line — now acting as support — keeps buyers optimistic for further upside.
Ethereum: Daily Chart Teases Buyers
The RSI’s firm position above the 70.00 overbought limit and the MACD’s proximity to the bearish crossover pose a challenge for ETH/USD bulls aiming to break a descending resistance line stretching from November 2021. However, the price sustained trading past 50-day and 100-day Simple Moving Averages (SMAs), with a successful breakout of an upward-sloping resistance line from February. The mentioned juncture now acts as a support zone, keeping the upside bias intact.
Also defending the near-term positive bias surrounding the ETH is an ascending support line from July 17.
With these catalysts in place, Ethereum appears well-set to portray another battle with a multi-month resistance line surrounding $3,945. However, the ETH bulls find upside past $3,945 difficult, which, if it happened, could target a horizontal resistance area surrounding $4,090 – $4,100, comprising tops marked since March.
As per the market chatters, ETH could test $4,500, but this would require sustained strength above $4,100, even though intermediate pullbacks are expected along the way.
Alternatively, a downside break of the immediate support line from July 17, close to $3,670, can drag prices to tops marked during late January, near $3,525 and $3,435.
However, the ETH/USD pair’s sustained weakness past $3,435 might open the door for the $3,000 threshold and the $2,903-$2,900 support confluence, including the 50-day SMA and previous resistance line from February, acting as the final defense of the bulls.
Further, the 100-day SMA and rising support line from April will highlight the $2,600-$2,595 regions as the key level to watch for the ETH bears.
Ethereum: Four-Hour Chart Defends Bullish Bias
On the four-hour chart, the ETH/USD pair edges higher within an ascending trend channel formation established since July 17, currently between $3,620 and $3,980.
The bullish bias also takes clues from the sustained trading beyond the 50-bar Exponential Moving Average (EMA), close to $3,715 by the press time.
Furthermore, the RSI’s upbeat condition, above 50.0 but not overbought, also favor the ETH bulls as they target the $3,980 hurdle. It’s worth noting that the MACD portrays sluggish momentum and can result into the intermediate pullbacks of the Ethereum prices.
That said, an upside break of $3,980 will highlight the higher levels discussed on the daily chart, starting from $4,090-$4,100.
Meanwhile, a clear rejection of the bullish channel, with a sustained break of $3,620, could drag the ETH to the 100-bar and 200-bar EMA supports, respectively, near $3,521 and $3,220. In a case where the ETH/USD prices remain bearish past $3,220, an ascending support line from May, close to $3,150 by the press time, will be the last defense of the buyers.
Overall, ETH/USD is likely to remain on the front foot and can challenge the yearly high, though the upside move could unfold gradually.
