Ethereum is showing signs of life! After a rough patch that saw its price plummet to $2,154 last week, ETH is now climbing back up towards $2,400. This has got investors feeling optimistic.
Is a Breakout Imminent?
Market expert Jesse Olson is seeing some bullish signals on Ethereum’s 8-hour chart. He’s spotting a potential buy indication, which could push ETH back to its previous highs if the overall market conditions are favorable. He’s also noticing a bullish divergence, which usually means momentum is shifting towards a price increase. Plus, a potential reversal candle has appeared, which could be a good sign for bullish investors if the current momentum continues.
Olson also points out that Ethereum is reclaiming its 200-week moving average (MA) and has broken above a downward trendline that’s been in place since late August.
But Don’t Get Too Excited Just Yet…
While these are positive signs, it’s crucial for Ethereum to sustain this recovery. If it fails to maintain its upward trajectory, it could retest lower support levels or just consolidate between $2,100 and $2,300.
Key Resistance Levels
Crypto analyst Daan Crypto Trades agrees that Ethereum has bounced back from support levels, but he’s also cautious. He thinks trading within the $2,100 to $2,850 range could be volatile.
Daan believes that a consolidation above $2,850 would be a significant bullish development for Ethereum. It would confirm a breakout from the current downtrend and set sights on the key $3,000 level, which hasn’t been reached since early August.
Current Status
Right now, ETH is trading at the top of a descending channel at $2,383, up nearly 2% in the last 24 hours. However, trading volume for the second-largest cryptocurrency has dropped by 15% in the past 48 hours, which could be a cause for concern.
Long-Term Perspective
Over longer timeframes, ETH’s price is still struggling with the sharp declines from the past month. It’s down 2.6% and nearly 7% in the last 14 and 30 days, respectively.
So, while there’s some positive momentum, it’s still too early to say for sure if Ethereum is on the verge of a bull run.
