- Ethereum is currently facing resistance from the $2725.20 level, holding buyers below.
- Technical indicators are showing positive signals while the oscillators are edging towards the sell side.
Ethereum works as an open-source decentralized blockchain system. It hosts other cryptocurrencies known as tokens through the use of the ERC-20 compatibility standard. Ethereum is secured by the proof of stake (PoS) algorithm and pioneers the concept of a smart contract platform. There are more than 120,168,172 ETHs currently circulating in the market.
Previous Price Movements and the Important Levels
Ethereum price has fell from $3588.30 in April 2022. Subsequently, the price dropped near the extreme order flow at $885.10 while swiping all internal liquidity. As a result, that level attracted a lot of buyers.
The price then surged by over 120% to $2028.10 which later confirmed the bullish sentiments in the market. On November 21, 2022, ETH price observed the first initial positive response from the $1077.20 demand zone and later broke above $2028.10 resistance.
Consequently, the Ethereum price made a major change in character since that breakout. It is moving in the upward direction and may reach the $3316.9 extreme resistance level. The last major demand zone is at the $1535.60 level which will play an important role in preventing the ETHs price from falling.
CoinMarketCap data shows that volume is up 166.80%. ETH is currently ranked 3rd out of 8799 active cryptocurrencies, also it is 630154.38% above its all-time low level.
Technical Analysis of the ETH/USD Price in Daily Timeframe
The ETH price recorded a positive heavy response between the 50-Day and the 200-Day EMAs. That shows that the buyers are not willing to give up below that level which makes the 50-Day EMA a minor and the 200-Day EMA a major support for the price.
In this chart, the price made some bullish peanut pattern-like structure at $2028.10 which is currently responsible for keeping the trend upwards. Subsequently, the price started ranging between the $2404.90 and $2168.30 level making that level a strong support.
On January 3, 2024, ETH price recorded strong buying pressure from the $2168.30 lower range and broke above the upper level. Consequently, that made the lower range a strong buying zone, and now, the price is responding to that level and moving impulsively, breaking above the initial resistance of $2725.20.
Furthermore, the RSI slope is showing strong buying momentum above the 70-mark upper band. It made a bullish crossover with the RSI signal line 50-mark and currently, both lines have wide distances indicating strong bullish sentiments.
Conclusion
Ethereum price is currently performing in a bullish trend by making bullish internal structures. It has also seen rebounded by the 50-Day EMA indicating strong buying in the current trading session. As per the technical analysis, the price broke above the $2800.00 level due to the strong bullish candles forming right now. Moreover, it may also reach the $3196.30 level after it manages to sustain above the $2725.20 level.
Technical Levels
- Resistance levels: $2725.20 and $3196.30
- Support Levels: $2028.10 and $2168.30
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or any other advice. Investing in or trading crypto assets comes with the risk of financial loss.