Will this halt Ethereum’s revival?
While the global cryptocurrency market recovered from recent lows, Ethereum’s rise has been quite impressive. The world’s largest altcoin has managed to post gains of 26% in the last three days and regained the $2,000 mark. At the time of writing, the digital asset traded at $2,156, up by 9% over the last 24 hours.
Ethereum 4-hour chart
ETH’s chart highlighted a key breakout once prices rise north of the upper trendline of its down-channel. Prices now headed toward a resistance mark of $2,200, an area that clashed with the daily 20-SMA. A successful rise above these levels could boost ETH towards its 200-SMA (green) and 23.6% Fibonacci level present at $2,341.
Such an outcome would represent an additional gain of 10% from the press time mark. Interestingly, Visible Range’s point of control also lay at $2,424 and close to the aforementioned points. Hence, the region between $2,340-2,420 formed a key resistance zone and had the potential to limit ETH’s upside.
Relative Strength Index was trading in bullish territory but an extended rise into the overbought zone would warrant a reversal. Despite ETH’s gains, its EMA Ribbons failed to crossover and suggested that bear market conditions were yet to subside. However, its contracted nature indicated that a reversal phase was in effect.
MACD also rose above equilibrium for the first time in nearly 15 days. While the above-mentioned signals were certainly indicative of a speedy recovery, ETH was yet to climb above key areas to fully convince market observers. A rise above $2,200 was certainly on the cards but sellers would likely return between $2,340-2,420.
ETH’s resurgence could push prices north of $2,200 over the coming sessions but a critical resistance zone lay above this mark. The region between $2,340 and 2,420 could cap gains and trigger a minor correction before ETH’s next upswing.