Ethereum has grown significantly over the past week, posting a nearly 53% gain in value. ETH managed to break through the key resistance level at $1,500 and turned it into a support level. The coin maintained its rally after crossing $1,000. However, a correction is still likely.
The bullish tendency increased again as the purchasing power also increased. The disestablishment of the bearish thesis began as ETH managed to breach the $1,200 level. If the base remains above $1,500, the bulls could push the price higher.
The rally also fueled the bullish outlook for the September update, The Merge. There is a chance that ETH will go as high as $2,000. However, there is another resistance that ETH must overcome for this to happen.
The coin is trading on a rising trend line and may soon hit $1,660 on its chart. The global cryptocurrency market cap today stands at $1.12 trillion with a positive change of 4.6% in the last 24 hours.
Ethereum price analysis: four-hour chart
ETH is trading at $1,600 as of this writing, meaning the altcoin king has broken $1,500. There was overhead resistance for the coin at $1,660, but the strength of buyers could push ETH as low as $1,660. The other important price limits are $1,745 and $1,800 respectively.
When the base crosses $1,800, Ethereum can see $2,000 on the chart. If the base then corrects, the first support level is $1,300 and then $1,200. The number of Ethereum rose in the last session. This means that purchasing power is still high.
ETH bulls have encouraged buyers to re-enter the market. The altcoin has found itself in the overbought zone several times over the past few weeks.
The Relative Strength Index showed an upward trend and was close to the level of 70. This means that the buyers are more important than the sellers in the market.
Ethereum is above the 20-SMA. This also indicates that the buyers are driving the price momentum in the market. Ethereum was above both the 50 SMA and 200 SMA lines – a sign of excessive bullishness in the market.
The increased purchasing power is also reflected in the other indicators, which however give mixed signals. Moving Average Convergence Divergence indicates price momentum and trend reversals. MACD is making a bearish crossover and showing a red histogram.
These red histograms are an indication of a change in price trend and a sell signal for the altcoin. The Bollinger Bands, which indicate volatility, remained wide. Wide Bollinger Bands indicate the likelihood of increased price volatility. This means that Ethereum may be subject to price fluctuations.
Text credit: Newsbtc
Last updated on July 21, 2022
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