Technical analysis
ethereum price has risen rapidly following a bounce from the $1,550 support level. While it has yet to reach the key $2,000 level, specific clues on the chart suggest that it is only a matter of time before it does.
The daily chart
On the daily chart, both the 50-day and 200-day moving averages, located around the $1,700 and $1,800 marks, respectively, have broken to the upside.
Currently, the market is traversing the large descending channel, a pattern that points to a possible test and break above the $2,000 level soon. The Relative Strength Index, however, demonstrates a clear overbought signal, which is a subtle indication that a correction or consolidation could occur before continuing.
The 4 hour chart
The 4-hour chart looks more bullish than the daily chart. The price already closed above the channel in the last two candles.
The short-term resistance level of $1,870 is also apparently broken, and everything seems headed for a rally towards the $2,000 mark. The 4-hour Relative Strength Index has not yet entered the overbought region, but it is close to doing so. However, judging by the current bullish momentum, more upside is more likely than a correction in the coming days.
Analysis of feelings
Coinbase Premium Index
ethereum price is aggressively approaching the $2,000 resistance level and might even surpass it. However, investors should analyze the market sentiment to make better decisions as the market is going through a critical make or break phase.
This chart shows the Coinbase premium index, which is a useful tool for gauging US investor sentiment. Positive values indicate the buying pressure of US market participants, and negative values are associated with their selling pressure. Numerous US institutions and large investors have entered the cryptocurrency market during the recent cycle. Considering their deep pockets, their behavior could profoundly affect the supply and demand dynamics in the market and consequently determine trend directions.
As shown in the chart, this metric has recently recovered above zero and is currently rising into positive territory. Therefore, it can be interpreted that US investors are relatively bullish on bitcoin and expect the recent price movement to continue. As a result, their demand can push the price up even further and sustain the current uptrend.
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Cryptocurrency charts by TradingView.
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