The second-largest cryptocurrency, Ethereum has been moving into a volatile zone which may push the price of the digital asset even higher. The price noted a downtrend in the short-term but bounced back once it hit support at $1,980.20.
At the time of writing, the price of Ethereum was pushing close to the resistance at $2,052.40 and was trading at $2,043. The market capitalization of the digital asset was reported to be $238.42 billion.
Ethereum 1-hour chart
Source: ETHUSD on TradingView
The above chart indicated that the downtrend in the price has given rise to more volatility in the market. However, as the market rebuilds, it may be preparing for a surge shortly.
This surge could provide an opportunity for the long-traders.
Reasoning
The Bollinger Bands were indicating high volatility in the market as they diverged. Whereas the signal line was indicating that the falling price has given way to the bears while the 50 moving average was also acting as a resistance.
However, there has been increasing buying pressure emerging in the market. The relative strength index highlighted this rising buying pressure as it moved away from the oversold zone towards equilibrium.
Whereas, the awesome oscillator was suggesting the momentum had shifted towards the bear due to the fall. However, the recent green bars visible in the awesome oscillator indicated that the buyers were rising in the market. This could switch the momentum towards the positive side and help the bulls to pull the price higher.
Crucial level
Entry-level: $2,059.92
Take Profit: $2,138.46
Stop-level: $2,028.62
Risk to Reward: 2.51
Conclusion
The current Ethereum market has been indicating that the price may witness a boost as the price hits resistance. As more buyers participate in building the market, ETH traders can benefit as the price surpasses $2,039.
