Daily Technical Analysis BTC & ETH — 3rd May 2022
Bitcoin price found support near the $37,400 level and started a recovery wave. BTC was able to reclaim the $38,000 level and slowly moved higher.
There was a clear move above the 23.6% Fib retracement level of the key drop from the $40,350 swing high to the $37,400 low. The price attempted a clear move above the $38,800 resistance level and the 100 hourly simple moving average.
However, bitcoin price struggled to gain strength above the $39,000 level. It also failed to settle above the 50% Fib retracement level of the key drop from the $40,350 swing high to the $37,400 low.
Besides, there is a major contracting triangle forming with resistance near $38,880 on the hourly chart of the BTC/USDT pair. It is now facing resistance near the $38,600 level and the hourly simple moving average.
The next key resistance could be near the $38,880 zone. A close above the $38,880 and $39,000 levels could open the doors for a decent increase. In the stated case, the price could even surpass the $39,250 resistance. The next major resistance is seen near the $40,000 level.
If bitcoin fails to clear the $38,880 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $38,400 level.
The next major support is seen near the $38,200 level and the triangle’s lower trend line. A downside break below the triangle support could even push the price below $38,000. The next major support is $37,400, below which the price could dive to $36,500.
Ethereum formed a base above the $2,750 level and started a recovery wave. ETH was able to climb above the $2,780 and $2,800 levels.
There was a clear move above the 50% Fib retracement level of the main drop from the $2,980 swing high to the $2,720 low. There is also a key rising channel forming with support near $2,820 on the hourly chart of ETH/USDT.
Ether price is now trading above $2,820 and the 100 hourly simple moving average. However, the bears are active above the $2,880 level. On the upside, an initial resistance is seen near the $2,880 level. It is near the 61.8% Fib retracement level of the main drop from the $2,980 swing high to the $2,720 low.
The next major resistance is near the $2,920 level. A clear move above the $2,920 resistance might start a steady upward move. In the stated case, ether price might rise towards the $2,980 high. Any more gains may perhaps send the price towards the $3,050 resistance in the near term.
If ethereum fails to gain pace above the $2,920 resistance, it could start another decline. An initial support on the downside is near the $2,820 zone.
The channel support is also near the $2,820 zone. If there is a downside break below the $2,820 support, the price could gain bearish momentum. The next major support is near the $2,760, below which the price could revisit the $2,720 zone. Any more losses may perhaps open the doors for a larger decline towards the $2,550 level or even $2,500.
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