Saturday, March 6, 2021

Why Current Dip In Price of Ethereum (ETH) Remains Healthy and Attractive? Details

A couple of hours ago, Ethereum (ETH), the second-largest cryptocurrency by market cap, traded as high as $1,437 before embarking on a correction against the USD. The price of ETH is approaching key support at $1,340 and $1,320.

Ethereum (ETH) Is Correcting Gains

Some hours ago, we saw a sharp increase in Ethereum (ETH) above $1,350 and $1,400. ETH price traded above the $1,420 resistance and traded as high as $1,437 before starting a downside correction.

Read Also: American Actress Lindsay Lohan Targets $100,000 Bitcoin (BTC) and $10,000 Ethereum (ETH)

There was a short-term downside correction below the $1,400 level. There was a break below the 23.6% Fib retracement level of the upward wave from the $1,215 swing low to $1,437 high. ETH is now trading below $1,380 and it is approaching a couple of important supports at $1,340.

Why Current Dip In Price of Ethereum (ETH) Remains Healthy and Attractive? Details

Source: ETHUSD on TradingView.com

There is also a major declining channel forming with support near $1,340 on the hourly chart of ETH/USD. Immediate support is near the $1,325 level, where the bulls are likely to take control.

The 50% Fib retracement level of the upward wave from the $1,215 swing low to $1,437 high. If there is a downside break below $1,325, there are chances of a drop towards the $1,280 level. The 100 hourly simple moving average is also near the $1,280 support zone. Any more losses could lead the price towards the $1,250 and $1,220 support levels.

Read Also: Crypto Trader Lists Cardano (ADA), Ethereum (ETH), and Other Two Altcoins with Bullish Potential

Fresh Increase in Ethereum (ETH) after the Healthy Correction?

If the price of Ethereum (ETH) remains stable above the $1,280 support zone, it could start a fresh increase. An initial resistance is near the $1,400 level and the channel upper trend line.

A close above the channel resistance could open the doors for more gains towards the $1,440 level. A clear break above the $1,440 zone could clear the path for a push towards the $1,500 resistance zone in the coming sessions. The next key target could be near the $1,550 and $1,580 levels.

Tobi Loba
Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.

Related Articles

Latest Articles