Ether rebounded over 5% yesterday to hit the $ 2,000 level again and is now just below that number
The cryptocurrency market did well yesterday, with Bitcoin crossing the $ 30,000 mark and trading back above $ 32,000. Ether jumped over 5% yesterday after the losses it posted on Tuesday.
At the end of Wednesday, ETH was trading at $ 1,996 per coin. It started on a bearish tone on Wednesday, falling to an intraday low of $ 1,754.27 before the rally began. ETH escaped the 62% FIB of $ 1,725 and its first major support level of $ 1,724. The rally caused Ether to hit a late intraday high of $ 2,033.16.
Although it has fallen back below the $ 2,000 mark at the time of writing, Ether appears poised to bounce back, especially if it gains the support of the broader cryptocurrency market.
#Bitcoin gets into this area in which we have been moving for days.
Resistance in this area appears to be approaching.
– Michaël van de Poppe (@CryptoMichNL) July 21, 2021
ETH price outlook
The ETH / USD 4 hour chart is very bullish right now, with general market momentum likely to drive it higher in the coming hours. ETH would have to stay away from the $ 1,928 pivot point to surpass the first major resistance level at $ 2,102.
If ETH receives support from the broader crypto market, it could beat Wednesday’s high of $ 2,033.16 and likely reach $ 2,050. Subject to an extended market rally, the first major resistance level is likely to limit further upside.
ETH / USD chart. Source: Coinalyze
However, if there is a market-wide crypto rally, Ether could bring the resistance at $ 2,250 into play before a pullback. The second major resistance level for the cryptocurrency is at $ 2,207.
Conversely, should Ether fall below the $ 1,928 mark, the bulls would be forced to defend the first major support level at $ 1,823. Unless there is a massive sell-off, Ethereum should comfortably stay away from its 62% FIB of $ 1,725, with the second major support level currently at $ 1,649.