Ethereum (ETH) is reeling from the consolidation after its recent bullish rally in May. Analysts are especially watching key support and resistance levels, as this could be what make or breaks the asset’s next big price move. Indeed, the short-term price action of the cryptocurrency is compelling people’s attention. A very bullish golden cross formation is looming, that could indicate the start of a major new bull trend.
Ethereum (ETH) reiterates importance of support at $2460 and $2375 levels. Adding to the importance of these levels are short- mid-term Exponential Moving Averages (EMAs) as they further reinforce their importance as levels to keep watch. If further selling pressure materializes, these support zones may act as springboards, possibly igniting a rebound.
A golden cross, a bullish signal, happens when a short-term moving average rises above a longer-term one. Such as the 50-day EMA crossing above the 200-day EMA. This pattern is usually a precursor to a significant strong uptrend and thus attracts the interest of technical traders.
ETH saw a substantial rally in May, rising from under $2,400 to just shy of $2,900. After this rally, the crypto entered a phase of consolidation, creating a new resistance point at $2,800. A strong break above this resistance area would open the door to a retest of the key psychological $3,000 level.
Technical traders are keeping a watchful eye over the $2,800 level as a breakout would likely see fresh inflows into Ethereum (ETH). The short-term and mid-term EMAs provide useful perspectives to understand Ethereum (ETH)’s price action as it stands now. They are useful for finding future areas of support and resistance.
