Ethereum led other altcoins to stage a recovery this week. For the first time in history, the gigantic smart contract token hit highs of $2,146. However, a correction occurred almost immediately, with Ether plunging to $1,930. Intriguingly, buyers wasted no time and took the bull by the horns. The hiccup to $1,930 was quickly erased as ETH reclaimed the ground above $2,000.
At the time of writing, Ethereum is doddering at $2,075 amid the bulls’ push to hit new record highs. The immediate downside is supported by the 50 Simple Moving Average (SMA) on the four-hour chart. Simultaneously, the downside is also protected by the ascending channel’s middle boundary support.
Ethereum’s uptrend might be gradual but appears to have been reinforced by the Moving Average Convergence Divergence (MACD) indicator. This technical indicator reveals when to long or short an asset. As the MACD line (blue) crosses above the signal line, it implies it is time to buy-in. On the flip side, investors are advised to sell when the MACD line slides under the signal line.
ETH/USD four-hour chart
It is worth keeping in mind that failure to close the day above the 50 SMA may see overhead pressure rise. Moreover, a break below the channel’s middle boundary and, by extension, the level at $2,000 would trigger massive sell orders, leaving Ethereum to tumble toward $1,800.
Ethereum intraday levels
Spot rate: $2,075
Trend: Bullish
Volatility: Low
Support: $50 SMA and $2,000
Resistance: $2,100 and $2,146
