Ethereum (ETH) could be poised for a significant rally as the price continues to show strong resilience above its bullish trendline. ETH’s ability to maintain its position above the trendline after a successful breakout suggests that a decisive move towards the $3,659 level is in the offing. Therefore, traders and investors are on a steady lookout as the digital asset sets the stage for potential further gains.
This article will provide an in-depth analysis of Ethereum’s current momentum and the implications of approaching this crucial resistance level through analysis of current price action and technical indicators.
The price of ETH was trading at around $3,503 and was up 1.88% with a market cap of over $421 billion and a trading volume of over $16 billion at the time of writing. There has been a 1.90% and 14% increase in both ETH’s market cap and trading volume over the past 24 hours.
Market Analysis: Ethereum’s Bullish Performance
Currently ETH has shown on the 4-hour chart optimistic resilience after a successful break above the trendline and the $3,360 resistance level. The focus is now on 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 could be ready to start 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 level. The signal line has crossed above the SMA of the indicator and both lines are currently attempting to return to the overbought zone.
On the 1-day chart, after a successful break above the $3,360 resistance, the price underwent a retest and is now showing a bullish move towards the $3,659 level. ETH is also trading above both the 100-day SMA and the bullish trendline. These recent price actions suggest that the cryptocurrency could experience further gains.
Finally, it can be observed that the signal line has crossed the SMA of the indicator and moved out of the overbought zone, with both lines attempting to settle above the zero line. This formation of the composite trend oscillator suggests that the Ethereum price might continue its bullish move towards the $3,659 mark.
Strategic Insights: Navigating ETH’s Bullish Trajectory
If Ethereum continues its bullish momentum and closes successfully above the resistance level of $3,659It may move further to challenge the resistance of $3,975. A break of this level may lead to an additional upward move towards even higher price levels.
Conversely, if ETH experiences a pullback at $3,659, it could start declining towards the $3,360 support range. Should this support level be broken, the digital asset could experience further declines, potentially testing the $3,051 support target and possibly other lower levels.
Main image from iStock, chart from Tradingview.com