ethereum (eth), the world's second-largest cryptocurrency by market cap, has currently been showing signs of a possible bullish move as key indicators turn bullish. This positive momentum that can be triggered by an increase in the market The buying pressure has generated growing optimism about the digital asset's near-term prospects.
In this article, as eth continues to gear up for significant gains, we will look at the key indicators that signal this bullish potential and discuss what this could mean for ethereum’s price trajectory.
Technical indicators: key signals that point to an upward movement
Currently, the eth price on the 4-hour chart with bullish momentum is attempting to move towards the 100-day simple moving average (SMA) and the 4-hour downtrend line. The digital asset has been able to maintain its bullish sentiment since breaking above the $3,051 mark. As a result of this price stability, ethereum could start a potential rally towards the $3,360 resistance level.
Moreover, the formation of the 4-hour Relative Strength Index (RSI) suggests that eth price may start a bullish move towards the $3,360 resistance level as the signal line of the RSI indicator has maintained its bullish sentiment above 50% and is currently rising towards the overbought zone.
On the 1-day chart, although the eth Price Still trading below the 100-day simple moving average (SMA) and the downtrend line, it can be seen that the crypto asset is attempting a bullish move towards the $3,360 resistance level.
After breaking above $3,051, ethereum has shown bullish resistance that has allowed it to maintain its momentum above this level. With this recent bullish momentum, if eth could break above both the downtrend line and the 1-day simple moving average (SMA), the digital asset could start a bullish rally.
Finally, on the 1-day chart, a close examination of the 1-day RSI formation reveals that eth could sustain its bullish rally above the 1-day SMA and the downtrend line towards the $3,360 resistance mark as the signal line of the indicator has moved out of the oversold zone and is heading towards the 50% level.
Assessing ethereum's Upside Potential
Yeah ethereum If it starts a rally towards the $3360 resistance level and closes above it, it can continue to rise to challenge the $3659 resistance. When this level is overcome, the digital asset can experience a further price increase towards the $3975 resistance level and possibly other higher levels.
However, if eth experiences a pullback at $3,360, it will start to decline towards the support level of $3,051. Moreover, the price of the crypto-asset could continue to fall to challenge the support target of $2,865 and perhaps further levels below if this level is broken.
eth price is currently trading around $3,156 and has increased by 2.73% over the past day, with a market cap of over $379 billion and a trading volume of over $11 billion at the time of writing. There has been a 2.77% increase in 24 hours in its market cap and a 27.64% decrease in trading volume.
Featured image from iStock, chart from Tradingview.com
