Ethereum (ETH / USD) is trading under downward pressure according to the 4-hour chart. On the above chart, we have drawn a downward pressure line, now located below this area, below the SMA of 21 and the EMA of 200, adding selling pressure.
Yesterday, ETH / USD was bouncing above the key support of 2/8 of murray (1,875). The market does not want to depart from this level as there is medium-term prospects of a return to the key price of $2,500.
But first it must challenge 3 resistance zones until it reaches this level. The first is the bearish line ($ 2,000), the second is the 200 EMA and at the same level is the 3/8 of murray ($ 2,187). Finally, the strong 4/8 murray resistance is seen at ($2,500).
While Ethereum is consolidating above 1,875, it is likely to make a technical rebound to the zone of $ 2,187 and $ 2,500 in the short term.
On the contrary, a close and consolidation below $ 1,800, a fall to the support zone of $ 1,500 could occur. This is a key level where selling pressure is expected.
The US CPI rose 0.9% in June and accelerated the annual rate of growth to 5.4%, marking its highest level since 1991. Traders sold Ethereum from the psychological level of 2,000 to the support of 1,875 due to fears that a continuously rising inflation rate induces the US Federal Reserve to withdraw its quantitative easing policies.
Our recommendation is to buy now or with the technical rebound at 2/8 or murrya, whenever the price of ETH is located above 1,875, with targets in $2,000 and $2,187 zone of the 200 EMA. The eagle indicator is in the oversold zone and could favor our bullish strategy.
Support and Resistance Levels for July 14 - 15, 2021
Resistance (3) 2,150
Resistance (2) 2,096
Resistance (1) 1,975
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Support (1) 1,826
Support (2) 1,755
Support (3) 1,663
The material has been provided by InstaForex Company - www.instaforex.com