Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is currently showing signs of potential upward movement as major indicators turn bullish. This positive momentum, which could be caused by an increase in the market The buying pressure has led to growing optimism about the near-term prospects of digital assets.
In this article, as ETH continues to prepare for significant gains, we dive into the key indicators signaling this upside potential and discuss what it could mean for Ethereum’s price movement.
Technical indicators: important signals that indicate an upward movement
Currently, ETH price on the 4-hours chart is attempting to make a move towards the 100-day Simple Moving Average (SMA) and the 4-hours bearish trendline with bullish momentum. The digital asset has been able to maintain its bullish sentiment since it broke above the $3,051 level. Due to 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 initiate an upward move towards the $3,360 resistance level as the signal line of the RSI indicator has maintained its upside sentiment above 50% and is currently rising towards the overbought zone.
On the 1-day chart, although the price of ETH still trading below the 100-day SMA and the bearish trend line, it can be observed that the crypto asset is attempting a bullish move towards the $3,360 resistance level.
After crossing above $3,051, Ethereum has shown bullish resilience and thus maintained its pace above this level. With this recent bullish momentum, if ETH could break both the bearish trendline and the 1-day SMA, the digital asset could potentially start a bullish rally.
Finally, a careful examination of the formation of the 1-day RSI on the 1-day chart reveals that ETH could continue its bullish rally above the 1-day SMA and the bearish trend line towards the $3,360 resistance level as the indicator’s signal line has left the oversold zone and is moving towards 50%.
Assessing Ethereum’s Upside Potential
If Ethereum starts a rally towards the $3,360 resistance level and closes above it, it may continue to rise to challenge the $3,659 resistance. On breaking this level, the digital asset may experience further price increase towards the $3,975 resistance level and possibly other levels above it.
However, if ETH sees a pullback near $3,360, it will start to move down towards the support level of $3,051. Additionally, the crypto asset may continue to drop in price to challenge the support target of $2,865 and perhaps other levels below it if this level is broken.
The price of ETH is currently trading at around $3,156 and is up 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 is a 2.77% 24-hour increase in market cap and a 27.64% decrease in trading volume.
Main image from iStock, chart from Tradingview.com