ETH Bulls Defend a Vital Support after the $2.6K Rejection

ByAlessio Palerma

Jun 17, 2021

Ethereum declined by 6.5% this week, though still trading in a symmetrical triangle outline. Against Bitcoin, the world’s favorite alternative coin lost support around 0.0628 Bitcoin, declining to a low of 0.0615 Bitcoin.

ETHE-USD: Ether Still in the Consolidation Pattern

  • Key Support Zones – $2,333, $2,200, and $2,000
  • Key Resistance Zones – $2,470, $2,600 and $2,700

At the start of the week, ETH tried to overcome the $2,600 resistance area. But, the coin failed near the 20-day moving average. On Tuesday, the altcoin rolled over, heading to the lower border of the symmetrical pattern.

Keep in mind that Ethereum has been in the triangle for about one month. A breakout from this pattern will dictate the next move for its market.

ETH: USD Near Term Price Forecast

What holds the future of this pair? The first support zone is at the lower boundary of the triangle, .5 Fib retracement, at $2,333. The next supports lies at .618 Fib ($2,200), February highs ($2,000), and $1,800.

Meanwhile, the first resistance area is at 100-d MA ($2,470). The next are $2,600, the upper boundary of the triangle ($2,700), and $2,800.

The Relative Strength Index remains below the mid-line, showing weak bearish sentiment. If it drops below the 40 zones, the amplified bearish attitude might drive Ethereum under the present triangle.

ETH-BTC: Ethereum Bleeds against Bitcoin

  • Key Support Zones – 0.06 Bitcoin, 0.0056 Bitcoin, and 0.0541 Bitcoin
  • Key Resistance Zones – 0.0628 Bitcoin, 0.068 Bitcoin, and 0.07 Bitcoin

Ethereum has had a consistent drop-trend against BTC since testing the resistance level at 1.414 Fib retracement, 0.077 BTC in the first weeks of June. Over the past week, ETH tried to defend the 20-d MA (0.07) but dipped to the 0.0628 BTC support.

Yesterday, Ethereum dropped below the 0.0628 BTC support reaching the 0.0615 BTC low. Last week’s support break shows that the asset could be heading to the 0.06 BTC mark.

ETH: BTC Near Term Price Forecast

In short term forecast, the first support area is at 0.0628 BTC. Others that follow are 0.056 Bitcoin, 0.0541 Bitcoin, and 100-d MA – 0.052 BTC.

Meanwhile, the first resistance is at 0.0632 Bitcoin. Others include 50-D MA (0.068 BTC), 0.07 BTC, and bearish .618 Fibonacci (0.0737 BTC).

The RSI shows bulls’ divergence, making high lows as the price registers higher highs. ETH might achieve more highs if that plays out.

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