Ethereum Bounces Off the 200 SMA, As Cryptos Reverse Up
Ethereum found support at the 200 daily SMA after the retreat this week following the FED decision, and has now bounced back up
Cryptocurrencies ended the larger bearish period at the end of last year and entered a bullish period, which is still ongoing, although since the middle of April, they have been retracing lower. BITCOIN quickly triggered the stop loss target of our buy BTC signal, when the price dipped below $25,000 this week, before reversing back up and trading above $26,000.
ETHEREUM made a break of the resistance and support area around $1,730 as the price fell to $1,630s, but the 200 SMA (purple) was waiting there, which stopped the decline. This moving average acted as support on the daily chart, and the price formed a doji candlestick above it, which is a bullish reversing signal, followed by a nice bullish candlestick on Friday.
Bitcoin Daily Chart – Returning Above $26,000
The FED paused with rate hikes this week, but markets took this meeting as bullish initially, implying two more rate hikes until the end of the year, which sent the USD higher and cryptos below the support this week. But, the sentiment shifted on Thursday and the USD turned bearish, improving the sentiment in the crypto market.
So, it appears that ETH/USD is experiencing a promising recovery after rebounding from a significant trendline and we decided to open a buy ETH signal at the 200 SMA. The digital currency moved above the crucial psychological milestone of $1,700, which could potentially lead to further gains. Although buyers have to push above the resistance at $1,730 now.
Nonetheless, our Ethereum signal is looking pretty good at the moment and we have placed the take profit target below the 42,000 level, targeting around $300 after buying near the bottom. This bounce looks promising, coming after some challenging market environment that cryptocurrencies have faced in recent weeks, with prices dropping significantly. However, the current rebound demonstrates that Ethereum’s strong underlying value proposition continues to attract buyers even during difficult times.
Ethereum Live Chart
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