The 100 SMA Holds As Support for Ethereum at First Attempt

Ethereum is finding support at the 100 SMA on the H4 chart

Written by: Skerdian Meta • Wednesday, January 27, 2021 • 1 min read

• Last updated: Wednesday, January 27, 2021

Cryptocurrencies have been extremely bullish since summer last year and the upside momentum became stronger towards the end of 2020 and in the first week of the new year. Some cryptos such as Bitcoin have been retreating lower in the last few weeks, while others continue to march higher.

One of those altcoins which has been continuing its journey higher is ETHEREUM . Ethereum made some new highs earlier this month, as it climbed above $ 1,430. It retreated around $ 400 lower, but last week it resumed the bullish trend, pushing even higher.

The last high was at $ 1,465, although this week we are seeing another retrace lower in ETH/USD. This digital currency lost nearly $ 400, but the decline stalled at the 100 SMA (green) on the H4 chart. There is a small bounce, but the price is not running away.

This might be a good chance to go long on Ethereum, but there is still a lot of room on the daily chart for further declines, so we will hold on for now. If the price declines to around $ 1,050 then we will try to open a buy Ethereum signal.

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ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.