Ethereum price has surpassed the $ 3,200 psychological level with higher average volumes. After weeks-long consolidation, ETH rallied more than 50% to the recent highs. Investors are expecting more gains above the 50 SMA (Simple Moving Average) at $ 3,195.80.
- Ethereum (ETH) price fails to capitalize on the previous session gains.
- ETH records a 50% gain from January’s low, now facing stiff resistance.
- Momentum oscillators give mixed signals, warn of any aggressive bids.
Ethereum rally inside rising wedge formation
On the daily chart, Ethereum has tossed a crucial resistance barrier, indicating sustained buying pressure. Further, the price has sliced through the 50 SMA at $ 3,196 again confirming the bullish outlook for the pair.
Eth has depreciated nearly from the all-time highs of made in November. After the exponential rise of 50% testing upon the lows made in January. This technical setup sets a bullish tone craving for further reasonable gains.
Market participants believe that any likely spike in buying interest is likely to push Ethereum’s price to retest the $ 3,600 psychological level. Furthermore, if buyers manage to overturn this barrier into a support zone, then the price could attempt to recoup the $ 4,000 horizontal resistance line.
ETH is moving inside ‘rising wedge’ a bearish continuation pattern. If the price closes below the $ 3,000 horizontal support zone. This also coincides with the break of the lower trend line of the pattern. The first downside target is placed at a $ 2,800 support zone, the level last seen in September.
However, a breakdown of the mentioned level could trigger a potential downside to the $ 2,324 barrier. Now, if a daily candlestick closes below this significant mark that would form a lower low and invalidate the short-term bullish outlook for the pair.
RSI: The Daily Relative Strenght Index (RSI) trades at 62, still below the overbought zone which tells the market is still far from overheating.
MACD: The Moving Average Convergence Divergence (MACD) indicator just breached the midline with a bullish crossover. Any uptick in the indicator could bring fresh buying opportunities.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.