Ethereum market overview: ETH/USD stepping above the moving averages
|- Tentative support areas for ETH/USD are failing to hold while the bears tighten their grip.
- Ethereum is likely to settle for sideways trading between $175 resistance barrier and $167 support.
Ethereum closed the last two months in losses. The three months winning streak was broken July and ever since ETH has remained depressed. Tentative support areas are failing to hold while the bears tighten their grip.
Many analysts believe that the largest altcoin is still vulnerable to declines. For instance, Max Keiser a renowned Bitcoin bull last week predicted a drop in Ethereum to lows around $90.
Following the weekend session, Ethereum managed to rise above both the 50 Simple Moving Average and the 100 SMA 1-hour. The movement scaled the levels above $170 but hit a snag at $175. Dips after the rejection at $175 found cushioning at $167 short-term support.
Read also: Bitcoin price analysis: BTC/USD recovery stalls under $10,000
At press time, Ethereum is exchanging hands at $171.75 after a minor correction during the Asian hours. The immediate upside is limited at $172 but an ongoing bullish momentum could refresh higher levels.
From a technical perspective, Ethereum is likely to settle for sideways trading between $175 resistance barrier and $167 support. The Relative Strength Index (RSI) at 60 is gradually sloping upwards a signal that the buyers have the energy to defend short-term support areas. The Moving Average Convergence Divergence (MACD) is leveling just above the mean line suggesting sideways trading as the next course for Ether.
ETH/USD 1-hour chart
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