ethereum (eth) may be on the cusp of a significant rally as the price has continued to demonstrate strong resistance above its uptrend line. eth’s ability to maintain its position above the trend line after a successful breakout suggests that a decisive move towards the $3,659 mark could be on the horizon. Therefore, traders and investors are keeping a close eye on things as the digital asset sets the stage for potential further gains.
This article delves into a deep analysis of ethereum’s current momentum and the implications of its approach to this crucial resistance level by analyzing the current price action and technical indicators.
eth price was trading at approximately $3,503 and was up 1.88% with a market cap of over $421 billion and trading volume of over $16 billion at the time of writing. There has been a 1.90% and 14% increase in both eth market cap and trading volume respectively over the past 24 hours.
Market Analysis: ethereum's Bullish Performance
Currently, on the 4-hour chart, eth has shown bullish Resilience following a successful breakout above the trend line and the $3,360 resistance level. The focus now shifts to the $3,659 resistance level while the price continues to trade above the 100-day simple moving average (SMA). This price stability suggests that ethereum may be on the cusp of starting a potential rally towards the $3,659 resistance level.
Moreover, the 4-hour Composite Trend Oscillator indicates that eth may maintain its bullish trajectory towards the $3,659 mark. The signal line has crossed above the indicator’s simple moving average (SMA) and both lines are attempting to return to the overbought zone.
On the 1-day chart, after a successful break above the $3,360 resistance, the price experienced a retest and is now showing a bullish move towards the $3,659 level. eth is also trading above the 100-day simple moving average (SMA) and the uptrend line. These recent price actions suggest that the cryptocurrency could see further gains.
Finally, it can be seen that the signal line has crossed above the indicator’s simple moving average (SMA) and has broken out of the overbought zone, with both lines attempting to move above the zero line. This Composite Trend Oscillator formation suggests that ethereum price could continue its bullish move towards the $3,659 mark.
Strategic Outlook: How to Navigate eth’s Bullish Trajectory
If ethereum continues its bullish momentum and closes successfully above the resistance level of $3,659could advance further and challenge the $3,975 resistance. A break of this level could lead to a further upward move towards even higher price levels.
On the contrary, if eth experiences a pullback at $3,659, it could start to decline towards the support range of $3,360. If this support level breaks, the digital asset could face further declines, which could test the support target of $3,051 and possibly other lower levels.
Featured image from iStock, chart from Tradingview.com
