Ethereum (ETH) has shown some recovery and bullish movements, recently trading above the $2,575 level as of Monday. On Friday, the crypto asset was able to find substantial support near the $2,461 line. Since then, it has climbed back up, indicating the possibility for continued upward momentum. Technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), further support this bullish sentiment for Ethereum. Their performance justifies confidence in the bigger picture assessment. While the recovery was modest, it nonetheless set the stage for more substantial gains as the week got underway.
Ethereum's Recent Price Action
Ethereum price rallied sharply since finding support at its daily $2,461 level on Friday. That support level served as a springboard, enabling Ethereum’s price to recover modestly during the weekend. By Monday, the positive momentum had picked up the pace. Ethereum traded up, hitting a price of about $2,576 as I was writing this.
In knowing Ethereum’s ability to make even greater advances, the first major supportive line located at $2,461 will be a key milestone. At this level, demand broke out, overwhelming the selling pressure. This change prevented even deeper declines and laid the groundwork for a rebound. The mere survival of ETH trading above this level speaks to the strength of the underlying forces present in this currently highly bullish market.
With Ethereum hanging above $2,575, both speculators and professional market watchers are waiting in the wings. Holding this level would mark a change in the trend of negative market sentiment. It could be the beginning of a more long-term upward bounce. The cryptocurrency market is, by its nature, volatile. As such, price movements are often volatile and quickly reactive to the diverse factors they are affected by.
Technical Indicators Point to Bullish Signals
Today, the most important technical indicators offer some deeper points on Ethereum’s current bullish momentum. Ethereum’s Relative Strength Index (RSI) on the daily chart is currently 56. This value is well above the neutral 50 level and demonstrates continued positive momentum. This is a sign, in general, of building buying pressure and the market winning momentum to the bullish camp.
The RSI is a momentum oscillator that indicates the speed and change of price movements. Readings on this index scale from 0 to 100. If the value goes above 70, that typically indicates overbought conditions and when the value falls below 30 it’s considered oversold territory. A 50 RSI or higher shows that buyers have the upper hand in this market. Conversely, an RSI under 50 indicates that the bears are in control.
As of last week, Ethereum’s daily chart MACD indicator just flashed a bullish crossover. This approval is a harbinger of good things to come for the cryptocurrency. A bullish crossover occurs when the MACD line crosses above the signal line. Regardless, this movement signals the start of a shift in trend from bearish to bullish. This new crossover is yet another confirmation that Ethereum is riding a positive momentum wave.
Support Level and Future Outlook
If Ethereum can hold support near its throwback at $2,461, that would be a bullish sign. This support level tells us that there is a lot of buying interest at this price level. Given this momentum, ETH is likely to continue heading higher in the days and weeks ahead. The combination of these technical indicators is painting a somewhat bullish picture for Ethereum’s short-term future.
Moving forward, there are a few major factors that will continue to dictate where Ethereum’s price goes next. These factors include general market sentiment, regulatory actions, and positive technological innovations. We believe the upcoming Ethereum upgrades will strongly influence its price trajectory. The ongoing move to Proof-of-Stake is one of the most important factors pushing this shift.
We encourage all investors and traders to do their own independent research and analysis before investing or trading in any cryptocurrencies. The crypto market is extremely volatile, do your research and understand that past performance doesn’t guarantee future results. Protect yourself against the coming risks and opportunities and get engaged today! In this manner, you allow yourself to create the smartest strategy for your investments—not just in Ethereum, but in all cryptocurrencies.
