- Bullish pressure match bear pressure following the calm after the storm; sideways trading could continue.
- The intraday traders need to look out for a cross sending the 12 EMA above the 20 EMA.
ETH/USD broke a key support level at $180 and turned on the sell rallies yesterday. Revenging bears pushed the price below the ascending trendline. Declines then progressed below the 50 simple moving average (SMA) 1-hour and the 100 SMA 1-hour. It failed to find bearing at $170 and refreshed the lows at $160; support congestion area.
There is calm after the storm at the time of writing with Ethereum exchanging hands at $164.45 while the upside is immediately limited at $168.00. An ongoing bearish momentum could eventually retest $160 support congestion zone for the third time; a move that is expected to result in a rebound as bulls come out of hibernation.
Ethereum Short-term Trend
According to the 1-hour chart, the bullish pressure is almost canceling out with the bear pressure. This means that ETH/USD will trend sideways in the coming sessions on Friday. However, the consolidation entering the weekend session is likely to reverse the trend upwards according to the data displayed by the exponential moving average (EMA).
Right before the reversed below $180.00 yesterday, the 12 EMA 1-hour crossed below the 20 EMA 1-hour. This signified the trend reversal giving the sellers more confidence in the reversing market. The flash drop to $160 has started to range as the gap between the two indicators begin to not only reduce but even out as well.
The intraday traders need to look out for a cross sending the 12 EMA above the 20 EMA. This will mark the beginning of reversal and show the strength of the trend. Meanwhile, the price is likely to continue being limited between the 12 EMA support and the 20 EMA resistance.
Another indicator that is signaling an incoming bull reversal is the moving average convergence divergence (MACD). The signal line continues to diverge further up to show that the buyers are gaining traction. Besides, it has recovered to -1.87 from -3.9784.
Key Technical Indicators:
12-day EMA: $165.02
20-day EMA: 166.14
MACD 1-hour: -1.87
Resistance 1: $168.00
Resistance 2: $172.00
Resistance 3: 180.00
Critical Resistance: $188.00
Support 1: $160.00 (support congestion area).
Support 2: $155.00 (previous week support).
Support 3: 140.00 (resistance turned key support).
The post Ethereum Price Analysis: Finds Solace at $160 Support Congestion Area appeared first on Coingape.