Ethereum (ETH): Can Upcoming Trendline Prevent More Price Dips?

ETH/USDT’s daily technical chart displays a cup & handle formation. Reaction to this setup should welcome uptrends for the alternative token, supporting upsides to conquer the neckline resistance at $2,000.

Such a move would see ETH attaining an early sign of trend reversals that might reclaim the initial target at $2,500. Nevertheless, the leading altcoin traded at $1,575 during this publication, with an 8% intraday loss.

Vital Points

  • Ethereum’s price has declined by 11% within the past three days.
  • Upcoming trendline support could help buyers sustain a revival rally.
  • ETH’s intraday volume is $22.5 billion, suggesting a 22.8% (insignificant) uptick.

Today slump emerged after the new CPI (consumer price index) data, which confirmed an 8.3% year-on-year inflation.

Nevertheless, the bearish stance intensified as Fed’s CME Watch Tool indicated a 20% probability of a 1% or 100 basis points rate hike. Therefore, the crypto market dipped into turmoil again, initiating the question of whether the bottom happened.

Meantime, the technical chart reveals a bullish reversal setup dominating the ETH price action. Thus, traders might maintain a bullish attitude provided the altcoin keeps the swing-low foothold at $1,430.

Press time actions have a bearish engulfing candlestick retesting the combined foothold of the upcoming trend-line and $1,550. Meanwhile, today’s 24hr candle closing beyond this footing would translate to recovery opportunities.

Potential reversals from the combined support would trigger a 28% surge for the alternative token. That would see Ethereum hitting the neckline of the mentioned setup. Contrarily, persistent selling pressure plus a daily closing beneath $1,550 would trigger plunged towards $1,430.

Technical Indicator

MACD Indicator

The Moving Average Convergence Divergence has the slow and fast line hovering above the mid-level, indicating a neutral bias among market players.


The Exponential Moving Averages seem to have marked a critical zone on the technical chart, ensuring weightage to the levels. Therefore, the 20d Exponential Moving Average at $1,550 foothold bolsters buyers to maintain the bullish trend.

Furthermore, the 200 Exponential Moving Average at the $2K resistance forms an additional obstacle against Ethereum bulls. Time will confirm upcoming price movements.

Support zones – $1,550 and $1,430

Resistance zones – $1,785 and $2,000