Ethereum ETH is looking strong while it holds the $2,500 support zone on its consolidation around $2,523 after a bullish reversal from the $2,450 area. The cryptocurrency has even managed to recapture the mid-Bollinger Band. Several signs today indicate a major move in that direction is imminent. Ethereum is currently holding above its 100-day Exponential Moving Average (EMA) at $2,486. This current consolidation is an important crossroads for figuring out where the next price movement goes.
Of note, Ethereum saw a rapid reversal earlier in the week after an approach of the previous resistance at $2,640. Since then, it has won a tenure of its own, having brought such stability. Its price is currently consolidating within a symmetrical triangle on the wide chart pattern. This dynamic often indicates a big breakout or breakdown is coming. As a result, spot traders and futures investors alike need to be acutely aware of this consolidation period.
As of this writing, all four major EMAs (20, 50, 100, and 200) are congesting hard between $2,486 and $2,525. Interestingly, in addition to the 50 SMA, the 20 EMA is right in this range as well. This clustering is an important battleground for Ethereum. When these moving averages converge they have the potential to dramatically amplify the impact of any subsequent breakout or breakdown.
Major support for Ethereum is located around $2,480, but major resistance is seen at $2,560. These ranges will almost certainly determine the limits within which ETH will function in the near term. As IEDC prepares for its next round of action, these factors will be critically important. Bulls must continue to defend and hold this area beneath the current price level in order to keep any bullish momentum alive.
With the technical indicators and price patterns converging, it looks like Ethereum’s next major directional move could be an important one. Speculators are eagerly awaiting breaks of these levels to take positions in the ensuing price action. A clear break above resistance or below support might set the tone for Ethereum’s direction over the next few days.
