ETH Technical Analysis: Bullish Revival Targets At $1700

According to the technical analysis, ETH prices show a bullish reversal from the $1400 resulting in a 12% jump to challenge the 50-day EMA to reach the $1700 mark.  The 30% drop in the ETH prices takes a bullish reversal from the $1400 support level resulting in a 12% recovery in the last four days. The reversal rally challenges the support trendline and the 50-day SMA to maintain the bullish trend. So, will the bullish trend result in a trendline breakout entry for sideline buyers?

Key Points:

• The ETH prices revert by 12% from the $1400 support level.
• The reversal rally may shortly give a bullish breakout of the resistance trendline.
• With a market cap of $193 billion, the intraday trading volume of Ethereum has increased by 24% to reach $23.05 billion.

Source — Tradingview

ETH Technical Analysis

ETH prices maintain a downward trend in the daily chart after facing rejection at the psychological mark of $2000. The falling prices lead to the generation of a resistance trendline which keeps the bullish growth in check and accounts for a 30% price drop. The recent bullish reversal starting after the bullish engulfing candle of 8.99% on 29th August challenges the resistance trend line and a 50-day SMA. However, the higher price reduction in the daily candle delays the breakout entry for sideline traders. The reversal rally finds the support of the increased intraday trading volume supporting the possibility of a bullish breakout. A Bullish break out of the resistant trendline will result in a price jump to the overhead resistance of $1700. Furthermore, an increase in buying pressure may drive the uptrend higher to the $1900 resistance level. Conversely, a bearish turnaround from the resistance trendline might break the $1400 support level to test the $1361 support level.

Technical Indicators

The RSI slope shows a diagonal trend in the nearly oversold zone, crossing the 14-day average line. The MACD indicator showcases the fast and slow line on the verge of giving a bullish crossover as bearish histograms decline. Hence the technical indicators display an increase in the underlying bullishness, raising the possibility of a trade line break out. The unleashed bullish momentum will fuel the bullish trend in ETH prices. Resistance Levels: $1700 and $1900 Support Levels: $1400 and $1361

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