Ethereum explored levels under $2,200 toward the end of last week. The price drop was in tandem with Bitcoin’s pullback to $33,000. Other crypto assets also suffered, with Ripple revisiting support at $0.8.
A recovery ensued with Ethereum gaining ground above several vital levels, including $2,400, the 50 Simple Moving Average (SMA), and the 100 SMA on the four-hour chart. This bullish showdown was gradual but consistent. However, several attempts to break the hurdle at $2,900 killed the hopes of lifting ETH above $3,000.
Ethereum bulls battle to secure higher support
Ethereum trades at $2,740 at the time of writing and after the rejection from $2,900. All attention is directed to finding higher support to prevent losses from gaining traction. The immediate anchor at $2,700 might try to defend the ongoing correction from revisiting lower levels at the 50 SMA and the 100 SMA.
ETH/USD four-hour chart
A symmetrical triangle pattern has been formed on the chart, bringing both bullish and bearish signals into the picture. Note that if the price cracks the upper trend line’s resistance, it will birth a significant uptrend eyeing $4,200.
On the other hand, closing the day under the lower trendline might trigger massive sell orders, placing Ethereum on a downhill journey to $1,400. The dilemma Ethereum faces is reminiscent of the consolidation within the symmetrical triangle.
The least resistance path is downward based on the direction of the Relative Strength Index (RSI). The trend strength indicator moves toward the midline, accentuating the bullish grip. Similarly, the MACD is about to flash a sell signal, further calling more sellers into the market. Hence, failure to hold at the 100 SMA or the 50 SMA could mean a potentially massive drop in the price.
Ethereum intraday levels
Spot rate: $2,740
Support: $2,700, the 50SMA and $2,300
Resistance: $2,900 and $3,400