- The losses on Monday extended below $160.00 before ETH/USD found solace at $156.53.
- The buyers should look out for a double-cross of the 12 EMA above the longer term 26 EMA.
ETH/USD is making a grand entrance into the broken range support at $163. This upside correction is happening in the wake of another flash drop witnessed yesterday when Ethereum came down like a stone in the air after the buyers failed to break above $170 resistance. The waterfall drop could not find support at $163 (range support). The losses extended below $160.00 before ETH/USD found solace at $156.53.
Significant bullish momentum is building up above $160. Besides, Ethereum is changing hands at $163.13 after zooming above the 12 exponential moving average (EMA). Moreover, there is a new uptrend developing above the short-term ascending trendline. Marginally above the range support, the price is facing resistance from the 26 EMA 1-hour.
All eyes are set on $170 in the short-term as the bulls continue to position themselves following the brief reversal seen yesterday evening (GMT). The retracement was necessary for a proper assault on $170 after the first attempt to break the hurdle failed miserably.
The gap moving average exponential gap that widened in the reaction to the declines on Monday has begun to narrow. The buyers should lookout for a double-cross of the 12 EMA above the longer term 26 EMA; which will be a confirmation of the bullish momentum likely to zoom past $170.
In the meantime, the moving average convergence divergence (MACD) 1-hour has changed direction upwards after the fall that sent to levels around -1.840344. The signal divergence at -1.115621 says that the trend is in the favor of the bulls. A correction above 0.0 will confirm a retracement to $170.
Ethereum Key Technical Indicators:
12 EMA 1-hour: $162.00
26 EMA 1-hour: $163.23 (former range support).
MACD 1-hour -1.115621
Medium-term target: $170.00
Resistance 1: $163.7081
Resistance 2: $168.00 (range resistance)
Resistance 3: $170.00
Support 1: $162.00 (12 EMA)
Support 2: $160.00
Support 3: $155.00