Ethereum (ETH) could be poised for a significant rally as the price continues to show powerful resistance 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 could be on the horizon. Therefore, traders and investors are constantly on the lookout as the digital asset prepares the ground for possible further gains.
This article takes an in-depth look at the current dynamics of Ethereum and the implications of the cryptocurrency’s approach to this key resistance level by analyzing current price fluctuations and technical indicators.
ETH was trading at around $3503 and was up 1.88% with a market cap of over $421 billion and trading volume of over $16 billion at the time of writing. In the last 24 hours, there was a 1.90% enhance and 14% enhance in ETH market cap and trading volume.
Market Analysis: Ethereum Bullish Results
Currently on the 4-hour chart ETH has shown bullish resistance after successfully breaking the trendline and resistance level at $3,360. Now, the focus turns to the resistance level at $3,659, while the price continues to hold above the 100-day straightforward moving average (SMA). This price stability suggests that Ethereum could be poised to initiate a potential rally towards the resistance level at $3,659.
Additionally, the 4-hour Composite Trend Oscillator indicates that ETH may maintain its bullish trajectory towards $3659. The signal line has crossed above the indicator’s SMA, and both lines are currently trying to revisit the overbought zone.
On the 1-day chart, after successfully breaking through the $3360 resistance, the price experienced a retest and is currently showing a bullish move towards the $3659 level. ETH is also trading above both the 100-day SMA and the bullish trendline. This recent price action suggests that the cryptocurrency could experience further gains.
Finally, you can see that the signal line has crossed above the indicator’s SMA and exited the overbought zone, with both lines trying to break above the zero line. This composite trend oscillator formation suggests that Ethereum price may continue its bullish move towards the $3659 level.
Strategic Insights: Navigating ETH’s Bullish Trajectory
If Ethereum maintains its upward momentum and closes successfully above the resistance level of $3659could continue to move forward to challenge the $3975 resistance. A break above this level could lead to further upside movement towards even higher price levels.
Conversely, if ETH experiences a pullback at $3,659, it could begin to decline towards the $3,360 support range. If this support level is broken, the digital asset could face further declines, potentially testing the $3,051 support target and possibly other lower levels.
Featured image from iStock, chart from Tradingview.com
