Technical Analysis

ETH/USD Analysis – July 28, 2021

By LonghornFX Technical Analysis
Jul 28, 20213 min

Bullish Bias Dominates Over Trendline at $2,150

The ETH/USD was closed at $2301.45 after placing a high of $2318.00 and a low of $2152.76. ETH/USD surged for the 7th consecutive session on Tuesday and remained green for the day amid the recent bullish market sentiment. Ethereum rose higher on Tuesday despite the latest denial from Amazon about the prevailing rumor of adding bitcoin into its payment mechanism.

Yesterday, speculation came into the market that Amazon was looking into ways to accept bitcoin payments as it has posted a job opening for Digital Currency and Blockchain Product Lead. After this news, the whole cryptocurrency market saw a massive jump, including the leading cryptocurrency Bitcoin that reached above $40,000.

However, on Tuesday, a spokesperson from Amazon denied all such rumours and said that the speculations about adding bitcoin into its payment mechanism were not true. This news weighed on the market and took away the inflows that were seen yesterday.

Despite the denial of Amazon, the Ethereum prices continued moving in the upward direction on Tuesday as various favourable developments kept supporting the second leading cryptocurrency. The ETH/USD rose on Tuesday after the government of Maharashtra announced a partnership with the Indian blockchain startup LegitDoc.

This partnership was done to implement a credentialing system to verify diploma certificates powered by Ethereum. The Maharashtra State Board of Skill Development reported that it would start advocating only the digital verification method for all manual verification requests starting from next year. The step was taken to counter the rising number of document forgery cases in the country. This news added strength to the ETH/USD prices on Tuesday.

Furthermore, the experts at an investing companion app, Finder, released its Ethereum price prediction poll results on Tuesday that represented a bullish sentiment for the present and future of ETH. According to polls, the average price of the second leading cryptocurrency will reach $4.5K this year, and for the year 2025, the poll suggested an expected increase in the price of ETH to about $18K. These predictions in favor of ETH provided massive support to the prices of ETH/USD on Tuesday, and the cryptocurrency remained green for the 7th consecutive session.

Moreover, the prevailing weakness of the U.S. dollar driven by the cautious behaviour of investors ahead of the Federal Reserve monetary policy went ETH/USD higher on Tuesday. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies fell to 92.32 and weighed on the U.S. dollar that pushed ETH/USD higher as both have a negative correlation.

ETH/USD Intraday Technical Levels

Support Resistance

2196.80 2362.04

2092.16 2422.64

2031.56 2527.28

Pivot Point: 2257.40

ETH/USD - Technical Outlook

Just like Bitcoin, the ETH/USD, is also trading with a bullish bias at a 2,279 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 2,325 and 2,406 levels. Bullish bias seems dominant on Wednesday. All the best!


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