By Shelly Melancon (Switzerland)
Buyers can retest ether’s $1,800 price resistance once the cryptocurrency rebounds above the moving averages. Analysts believe that once it can surge past this important resistance, the ETH/USD should rise above $2K. The bull’s resistance was pegged at the $1.85K high at the price action movement of four days ago. Since then, the bullish trend is yet to retest the $2K overhead resistance. As of this writing, eth price is close to the moving averages. Hence, if the bears can break the small moving averages (SMA’s), then eth’s price will fall back to $1,400 from its current price of about $1,760.
Ethereum Analysis Using Indicators
The cryptocurrency soars by 80% of the daily stochastic which is an indication that it is now within the overbought region. Hence, a price decline is possible. But this overbought theory may not be realistic for a trending market. Since the price is at the 49th level of the relative strength index, it is a sign of balance between demand and supply. Also, the MACD signals a bearish trend which is a blot on the bullish trend. There is a sell signal after the $1890 barrier. There is also a MACD cross just beneath the signal line, an indication that eth won’t be a bullish run yet.
Also read:If this MACD should hold, the possibility of a downtrend is high. Intotheblock’s IOMAP model shows that eth’s support zone is quite robust. The support which peaks at about $1.72K comprises almost 497K wallets with about 9.65M Ether. The good news is that ether faces a slight resistance between $1.78K and $1.81K. Between this range, almost 517K addresses have bought about 3.42M ether. This weak resistance indicates an uptrend which is likely to be sustained near the $2K mark. The 4-hour chart shows a gold cross pattern after the 50 SMA cross over the 100 SMA. This is an indication that Ether has an upward momentum which might be an ideal time to take a long position.
Source: TradingView
Technical indicators:
Important resistance levels – $2.5K and $2.7K
Important support levels – $1.5K and $1.3K
Will The Biggest Altcoin Resume an Uptrend?
If the $1.7K support holds, then we should expect an upward trend for ether. In a similar vein, a retraced candle body almost hit the 78.7% Fibonacci retracement level three days ago. Thus, there is a huge possibility that ether will move up and decline at almost $2K high or the 1.273 Fibonacci extensions.
Ethereum Is Gaining Traction in Mainstream Adoption
According to Santiment, on-chain data reveals a recovering growth for the Ethereum network. This data monitors any additions to the network every day and in the last 30 days, there has been about a 26% increase in the number of new addresses that have joined the network. That means an uptrend in ether price as the top altcoin continues to gain momentum in mainstream adoption. We can conclude that despite falling above the moving averages, Ethereum’s bullish run can still be sustained.
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