On Wednesday, ETH, the native coin of Ethereum The blockchain saw a significant rejection at the $2,871 resistance level. Since this rejection, the price of Ethereum has seen a significant upward movement of over 9% and is showing signs of going even further.
At the time of writing, price is still showing strong signs of upside towards the 100-day simple moving average (SMA) and trendline, both on a 4-hour and 1-day time frame. ETH price is currently trading around $3,116, up approximately 0.47% over the past 24 hours.
A closer look at the Ethereum chart with the following technical indicators
100-day moving average and trendline: As shown in the image below, although ETH price is currently moving towards the 100-day simple moving average and the trend line, it is still trading below these two indicators. This means that at some point, the price of Ethereum could reverse and continue its downward movement.
The RSI Indicator: Also observing the chart using the Relative Strength Index (RSI) indication, it shows that the RSI signal line is moving above the 50 line, which strongly indicates that the price could still change. to the topas seen in the graph.
The 4-Hour MACD Indicator: After a close look at the MACD indicator on a 4-hour time frame, one can see that the MACD histogram has moved above the zero line. Additionally, the MACD line and the signal line have crossed and are moving towards the zero line. This suggests that there could be a sustained upward movement in prices until a potential reversal.
Final thoughts on the ETH movement
Based on Ethereum’s previous move, there are two resistance levels at $3,250 and $3,355, as well as a support level at $2,819. As Ethereum price rises, if it manages to break above the $3,250 resistance level, it could continue to advance towards the $3,355 resistance level.
On the contrary, if Ethereum fails to break its previous resistance level, it could reserve and begin a decline towards its previous support level of $2,819. Should ETH manages to break through this support level, it could descend even further to establish a new low.
Featured image from iStock, chart from Tradingview.com
