In the early Asian trade, Ethereum (ETH/USD) is trading below the SMA of 21 and above the EMA of 200, located at $1,875 according to a 1-hour chart. This level stopped the fall of ETH when yesterday it moved lower from $2,200 to $1,873. The price is now bouncing above the 200 EMA.
This level of the EMA of 200 now acts as strong support for ETH / USD. Something that adds strength to this support is the line of 2/8 of murray that was located at this level on May 23 was when Ethereum tested the strength of this area.
Therefore, if Ethereum remains above the 200 EMA and 2/8 murray, the bullish outlook is still valid. So, there could be a good opportunity to buy with targets at $2,187 and up to $2,500 x ETH.
Last time ETH touched this $1,875 support level, in 3 days we saw it return to the zone of $2,900. So, this time we expect a strong rebound to the level of $ 2,500.
Conversely, a close on daily charts and a consolidation below this 2/8 murray level and the 200 EMA could launch a new bearish cycle for ETH and fall to the $1,500 support level, a key level which acts as a psychological point.
Our recommendation is to buy ETH / USD at the current price levels, or above the 200 EMA and 2/8 Murray with targets at the bearish channel top of $2,187 and the level of $2,500.
The eagle indicator is in the extremely oversold zone. It is likely that in the coming days we will see a correction movement for Ethereum and a recovery above $ 1,875.
Support and Resistance Levels for June 22 – 23, 2021
Resistance (3) 2,309
Resistance (2) 2,179
Resistance (1) 2,035
----------------------------
Support (1) 1,795
Support (2) 1,651
Support (3) 1,500
