- Ethereum is up 1.25% on the day, but the resistance at $410 is capping intraday gains.
- The technical outlook for Ethereum is bullish in the short-term, key resistance stands at $414.
Ethereum price battered bulls found a breather during the evening trading session on Monday and the Asian trading hours on Tuesday 7. The second largest crypto by market capitalization has come under rising selling pressure since last week. ETH/USD explored the levels slightly below $400 in the first week of August. There have been several attempts to retrace higher but bear pressure at $420 has led to a series of declines back to the drawing board at $400. Since the weekend trading, upside movement has been halted short of $414.
The trading yesterday witnessed more declines, but the bulls held ground at $400.99. The price spiked in a couple of engulfing candles on the chart but came to a halt at $406. The 38.2% fib retracement level with the last swing high of $413.21 and swing a low of $400.99 failed to hold the price shortly after the opening of the session on Tuesday. After exploring the $403 dip ETH/USD bounced back and settled around $405 before it sprung up into yet another bullish engulfing candle that broke above the 61.8% Fib resistance at $408.54. A slight stretch towards $410 did not succeed and the price is currently seeking balance above $409.00.
The stochastic is still bullish in the overbought region while the 50 SMA has crossed above the longer term 100 SMA to signal that the bulls still got the power to support the price above $409 if not retrace above $410. It appears that the ETH/USD will drop slightly to 61.8% Fibo before re-attacking $410 and eventually recoil towards the key resistance at $414. The critical short-term resistance is at $418.
ETH/USD 15-minutes chart
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