On Wednesday, eth, the native currency of the ethereum blockchain saw a significant rejection at the $2,871 resistance level. Since this rejection, ethereum price has seen a significant bullish move of over 9% and shows signs of continuing to advance.
At the time of writing, the price is still showing strong signs of upward movement towards the 100-day SMA and the trend line on both the 4-hour and 1-day time frames. eth price is currently trading around $3,116 and up about 0.47% in the last 24 hours.
A closer look at the ethereum chart with the following technical indicators
100-day moving average and trend line – As seen in the image below, although eth price is currently moving towards the 100-day simple moving average and the trend line, is still trading below these two indicators. This means that at a certain point, ethereum price could suffer a possible reversal and continue its downward movement.
<img decoding="async" class="size-medium wp-image-298226 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/05/Ethereum-Rebounds-Strongly-After-Rejection-of-2871-Support.jpeg" alt="ethereum” width=”640″ height=”372″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/05/WhatsApp-Image-2024-05-04-at-10.06.08-AM.jpeg?w=1439 1439w, https://technicalterrence.com/wp-content/uploads/2024/05/Ethereum-Rebounds-Strongly-After-Rejection-of-2871-Support.jpeg 640w, https://bitcoinist.com/wp-content/uploads/2024/05/WhatsApp-Image-2024-05-04-at-10.06.08-AM.jpeg?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/05/WhatsApp-Image-2024-05-04-at-10.06.08-AM.jpeg?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/05/WhatsApp-Image-2024-05-04-at-10.06.08-AM.jpeg?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/05/WhatsApp-Image-2024-05-04-at-10.06.08-AM.jpeg?w=1140 1140w” sizes=”(max-width: 640px) 100vw, 640px” data-recalc-dims=”1″/>
The RSI Indicator: Also observing the chart with the help of the Relative Strength Index (RSI) indication, it shows that the RSI signal line is trending above the 50 line, which clearly indicates that the price is still could go up, since seen in the painting.
The 4-hour MACD indicator: After closely observing the MACD indicator on the 4-hour period, it can be seen that the MACD histogram has moved above the zero line. Furthermore, the MACD line and the signal line have crossed and are heading towards the zero line. This suggests that there may be a sustained upward price movement until a break occurs. potential reversal.
Final thought on the eth movement
Based on ethereum's previous movement, there are two resistance levels of $3,250 and $3,355, and a support level of $2,819. As ethereum price rises, if it manages to break above the $3,250 resistance level, it could continue to move further towards the $3,355 resistance level.
On the contrary, if ethereum fails to break its previous resistance level, it could reserve and begin a downward move towards its previous support level of $2,819. If eth manages to break above this support level, it may decline further to set a new low.
Featured image from iStock, chart from Tradingview.com
