Ethereum has broken a new high, reaching the psychological threshold of $3,000. Let’s take a look at the future prospects for ETH.
Status of Ethereum (ETH)
After starting a correction up to $2,160, the price of Ethereum resumed its upward trend by crossing its last peak at $2,729. At the time of writing, one Ether is trading around $3,000. This price level corresponds to the 50% Fibonacci retracement threshold, thus constituting significant resistance. Ethereum’s recent rise has therefore allowed it to return above its 50-day moving average, which confirms that the cryptocurrency is still in an upward trend.
Naturally, Ethereum’s bullish momentum has resumed with vigor, confirmed by oscillators. The latter in fact rebounded above the median level and exceeded their previous peak, thus invalidating the bearish divergence previously observed. This development is therefore positive for a healthy continuation of ETH’s upward trend. However, it should be noted that the RSI is in an overbought zone, which suggests a period of consolidation to come.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Hypotheses for the price of Ethereum (ETH)
If the price of Ethereum remains above $2,850, we could anticipate a bullish continuation up to the $3,100 level. The next resistance to take into account, if the bullish movement continues, would be $3,350 or $3,500. At this stage, this would represent an increase of more than +19%.
If the Ethereum price fails to stay above $2,850, we could envisage a return to $2,700. The next support to take into account, if the bearish movement continues, would be at the $2,500 or $2,400 levels. At this point, that would represent a drop close to -19%.
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Conclusion
Ethereum has regained momentum after breaking its last high. Although a period of consolidation could be envisaged, everything suggests that the trend remains active. Could this be due to a potential approval of Spot Ethereum ETFs? What is certain is that it will be crucial to carefully observe the price reaction at the different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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