ETHUSD (Ethereum) has been experiencing a downside correction after its short-term uptrend failed to cross above the 2,030 region. However, the cryptocurrency found strong support at its 50-day simple moving average (SMA) and is currently attempting to rebound.
The momentum indicators suggest that bullish forces are gaining strength but risks remain tilted to the downside. Specifically, the stochastic oscillator is ascending after rebounding from the 20-oversold zone, while the RSI’s advance paused before reaching the 50-neutral mark.
Should buying pressure intensify, the price could encounter initial resistance at the 1,785 barrier. Piercing through this region, the bulls could aim for the recent peak of 2,030 before the spotlight shifts to 2,450. Even higher, the 3,040 hurdle, which has acted both as resistance and support, could come under examination.
On the flipside, if the price enters a new declining phase, the recent reversal point of 1,530 may act as the first line of defence. Sliding beneath that floor, the August support of 1,370 could be the next obstacle for the bulls to overcome. Failing to halt there, the crucial 1,000 psychological mark might cease any further declines.
Overall, even though ETHUSD has experienced a slight retracement its bullish short-term picture remains intact. Therefore, for the recovery to resume, the price needs to initially jump above the 2,030 ceiling.
