The Ethereum price has managed to recover and is trading above $1,860 at the time of writing. To start a new rally, the coin must according to Aayush Jindal however, take back the $1,920. That is apparently what it takes to start a new bullish trend for the market’s largest altcoin.
The fact that the price of Ethereum has managed to live up can be called special. After all, this week is all about the attack by the US Securities and Exchange Commission (SEC) on both Binance and Coinbase.
Many cryptocurrencies suddenly become like effects under US law, which appears to be a negative development for the industry. Especially if the judge agrees with the SEC in their judgment.
This could mean that many coins will have to disappear from the exchanges and the market will come under further pressure. For now, however, that’s speculation and the market seems unfazed by the SEC’s violence.
It may be that the market is now so used to bad news in relation to the SEC that it can no longer really push prices down. Of course, we briefly saw a drop on Monday, but Ethereum has now recovered.
Do we have to worry?
For now, Ethereum is mainly showing strength, but if the digital coin fails to break the $1,900 resistance, it could be short-lived. Initial support on the way down is at the $1,860 level and the 100-hour simple moving average.
If they break, there is a chance that Ethereum will slide further down. Then we find support in the $1,840 zone, which also includes the 50% Fibonacci level from the recent swing up from $1,777 to $1,898.
If we don’t hold $1,840, there is a chance that the price will drop to $1,775 or even $1,740 in the coming trading sessions. The MACD on the hourly chart is also starting to lose momentum for Ethereum, which is a dangerous trend overall.