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Ethereum charts a course for $1,800: a closer look at the reasons why

Winnie Kimeu

Writer, News

Feb 8, 2023 at 05:36

Ethereum held its ground steadfastly above the $1,600 support, mirroring Bitcoin’s bullish stance at $23,000. With a firm foundation above $1,620, ETH has recently embarked on a steady upward ascent.

Steady as she goes

Ether’s $1,650 and $1,660 resistance levels were decisively conquered, with a decisive break above a critical bearish trend line that had stubbornly lingered near $1,640 on ETH/USD’s hourly chart. 

ETH/USD Price chart, 1 hour. Source: CoinMarketCap
ETH/USD Price chart, 1 hour. Source: CoinMarketCap

Furthermore, the pair boldly scaled the $1,700 resistance, reaching a summit of $1,698 before taking a brief respite from its upward journey.

Moreover, on Jan 18, 2023, Ethereum danced atop $1,660 and the 100 hourly moving average, nimbly navigating the markets. The coin finds itself near the 23.6% Fibonacci retracement level of its triumphant ascent from the $1,624 low to its magnificent $1,698 peak.

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ETH price with 100 hours Simple Moving Average (SMA)
ETH price with 100 hours Simple Moving Average (SMA)

Granted, the $1,690 level presents an imminent challenge, a formidable fortress that Ether must conquer. 

However, beyond lies the next great frontier, the $1,700 resistance, waiting to be breached.

The next great frontier

Should Ether break through this barrier, it would ignite a blazing path towards higher peaks, with the $1,750 resistance as the next target. And with enough momentum, the skies are the limit, with Ether reaching for the $1,820 resistance zone, scaling new heights in its never-ending pursuit of glory.

Notably, the $1,650 zone serves as the next bastion of support, as well as the 61.8% Fibonacci retracement of Ether’s ascent from $1,624 to $1,698. 

ETH Price chart with Fibonacci Retracement Levels - Trading View
ETH Price chart with Fibonacci Retracement Levels – Trading View

Nonetheless, if this defense falls, Ether may plummet towards the $1,620 support. On top of that, if the downward spiral continues, the $1,600 support zone may be the last line of defense against total devastation.

Technical Indicators paint a picture of the ETH/USD landscape:

  • Hourly MACD: A bullish breeze cools, diminishing its upward climb.
  • Hourly RSI: Soars to new heights, breaching the midpoint of 50.
  • Major Support Level: A foundation of stability at $1,650
  • Major Resistance Level: A formidable barrier at $1,700

Definition of terms:

What is a Moving Average?

Moving Average (MA) is a technical indicator that shows the average price for a particular trade over a chosen time frame. Moving Averages are used by investors and traders to track and identify trends by smoothing out normal day-to-day price fluctuations. Formula: The sum of the past X periods is divided by the number of periods to find the average

What is the Fibonacci Retracement level?

The Fibonacci retracement levels are lines that mark the potential spots of support and resistance. Born from the Fibonacci sequence, these horizontal lines symbolize the percentage of a prior move that the price has retraced. The four primary levels are 23.6%, 38.2%, 61.8%, and 78.6%. And while 50% may not be a recognized Fibonacci ratio, it still holds its own andis widely used.

What is the MACD?

The Moving Average Convergence/Divergence provides a visual representation of the bond between two EMAs (Exponential Moving Averages) of a security’s price. For optimal results, the MACD is often used with daily periods and the commonly accepted configuration of 26/12/9 days.

What is the RSI?

The Relative Strength Index, or RSI, is a cleverly crafted indicator in the world of technical analysis that measures the might of a security’s price performance. Typically, the RSI is portrayed as a line graph, also known as an oscillator, that dances along a scale ranging from 0 to 100. As a rule of thumb, if the RSI crosses 30 on the chart, it signals a positive outlook (bullish), while a cross of 70 signals a negative one (bearish).

What is the Major Support Level?

Support occurs where a downtrend is expected to pause due to a concentration of demand.

What is the Major Resistance Level?

Resistance occurs where an uptrend is expected to pause temporarily, due to a concentration of supply.

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