Ethereum (ETH) could be on the verge of a significant upside as the price has continued to demonstrate strong resilience above its bullish trendline. ETH’s ability to maintain its position above the trendline after a successful breakout suggests that a decisive move towards the $3,659 mark could be on the horizon. Therefore, traders and investors are on the lookout as the digital asset paves the way for possible further gains.
This article looks at providing an in-depth analysis of Ethereum’s current momentum and the implications of its approach to this crucial resistance level by analyzing current price action and technical indicators.
At the time of writing, ETH was trading at around $3,503 and was up 1.88%, with a market cap of over $421 billion and a trading volume of over $16 billion. ETH’s market cap and trading volume have increased by 1.90% and 14%, respectively, in the last 24 hours.
Market Analysis: Ethereum’s Bullish Performance
Currently, on the 4-hour chart, ETH has demonstrated bullish Ethereum has shown resilience after a successful break above the trendline and the $3,360 resistance level. Attention now shifts to the $3,659 resistance level, while the price continues to trade above the 100-day simple moving average (SMA). This price stability suggests that Ethereum could be on the verge of initiating a potential rally towards the $3,659 resistance level.
Moreover, the 4-hour Composite Trend Oscillator indicates that ETH could maintain its bullish trajectory towards the $3,659 mark. The signal line has crossed above the indicator’s moving average SMA and both lines are currently attempting to move back into the overbought zone.
On the daily chart, after a successful break above the $3,360 resistance, the price underwent a retest and is now showing an upward move towards the $3,659 level. ETH is also trading above the 100-day moving average and the rising trend line. These recent price actions suggest that the cryptocurrency could see further gains.
Finally, we can observe that the signal line has crossed the indicator’s moving average SMA and exited the overbought zone, with both lines attempting to move above the zero line. This formation of the Composite Trend Oscillator suggests that Ethereum price could continue its bullish move towards the $3,659 mark.
Strategic Outlook: Navigating ETH’s Bullish Trajectory
If Ethereum continues its bullish momentum and closes successfully above the resistance level of $3,659It could further advance to challenge the $3,975 resistance. A break of this level could lead to further upward movement towards even higher price levels.
Conversely, if ETH experiences a pullback to $3,659, it could start to decline towards the $3,360 support area. If this support level is breached, the digital asset could face further declines, potentially testing the $3,051 support target and possibly other lower levels.
Featured image from iStock, chart from Tradingview.com
