Technical Analysis

ETH/USD Analysis – July 27, 2021

By LonghornFX Technical Analysis
Jul 27, 20213 min

Upward Trendline Supports Ethereum at $2,150

The ETH/USD was closed at $2227.96 after placing a high of $2430.64 and a low of $2172.88. ETH/USD rose for the 6th consecutive session on Monday and reached its highest since 16th June amid the prevailing bullish sentiment of the market. The rising prices of BTC/USD improved the whole cryptocurrency market sentiment and turned almost every coin bullish amid the latest news that Amazon was looking to accept bitcoin payments. The whole market mood was positive after bullish comments from Jack Dorsey and Elon Musk during the B-Word conference.

Ethereum, which is the second biggest cryptocurrency according to market cap, also turned green and reached its highest level in six weeks following the recent bullish market trend. Furthermore, ETH 2.0 staking continued to rise as more validators were being added to the staking platform. It is reported that about 180,000 to 200,121 validators have been welcomed by ETH 2.0 staking in less than four weeks.

The rise in ETH prices was similar to bitcoin driven by the rumors that Amazon, an e-commerce giant, was looking into digital currencies. This all came in after the leading e-commerce company posted a job seeking an executive to build its digital currency and blockchain strategy. Meanwhile, some media reports started speculating that Amazon was considering accepting bitcoin payments. These speculations combined with the recent bullish trend pushed BTC/USD above $40,000 and helped the leading cryptocurrency change the whole crypto market sentiment positively. Ethereum also followed the trend on Monday and reached near $2500 with eyes on $3K.

On the other hand, the inventor of ETH, Vitalik Buterin, will feature in the new animated web series called “Stoner Cats”. The series will launch on 26th July 2021 Monday and will comprise five episodes. The viewers will need to purchase an NFT value at 0.35ETH or $700 to access new episodes. Furthermore, the rising prices of ETH/USD could also be attributed to the weakness of the U.S. dollar. The DXY dropped to 92.5 as the risk sentiment improved in the market, and investors became cautious ahead of the Fed monthly policy meeting. The weakness in the U.S. dollar gave the green light to the already rising prices of ETH/USD as both have a negative correlation, and the second leading crypto reached its highest level in six –weeks..

ETH/USD Intraday Technical Levels

Support Resistance

2123.68 2381.44

2019.40 2534.92

1865.92 2639.20

Pivot Point: 2277.16

ETH/USD - Technical Outlook

The second most traded cryptocurrency, ETH/USD, is trading with a bullish bias at a 2,155 level. However, the pair has retraced back from the multi weeks the high level of 2,406 level. The MACD and other leading indicators entered the overbought zone, triggering a Fibonacci retracement in Ethereum. On the chart above, the ETH/USD has completed 38.2% Fibonacci retracement at 2,150 level, and the upward trendline is now extending support at the same level. A bearish breakout of 2,150 levels exposes ETH towards 2,050 and 2,008 support levels. At the same time, the resistance continues to hold at 2,255 and 2,406 levels. Bullish bias seems dominant on Tuesday. All the best!


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