Saturday 28 May 2022
Home / Company News / Ethereum: Is $3k Or $2k The Cost Of This Dip?

Ethereum: Is $3k Or $2k The Cost Of This Dip?

On Wednesday, the price of Ethereum extended its previous session gains. ETH is still trading below the psychological $2,880 level. Still, once a decisive close above the bearish sloping line stretching from the highs of $4,759 is achieved, Ethereum’s price has room to rise.

Over the last four months, the king alt has been on a sharp fall from its ATH. At the $3,100-mark Point of Control, there was a battle between buyers and sellers.

Ethereum Below Psychological Barrier

ETH wants to test the $2,862-level before entering a likely low volatility phase on its Bollinger bands, assuming the altcoin follows its past trends (BB). Before the alt continues to notch higher bottoms, near-term retracements could find support at the $2,500 level.

The price of Ethereum is currently moving higher, with large gains, but there has been a slight retreat from higher levels. To close over the psychological $2,800 level, further buying pressure is essential.

Related Reading | Yearn Finance (YFI) Down 13% Following Andre Conje’s Exit

In the short term, the upward momentum is projected to continue as long as buying pressure is continuous. As a result, the $2,830 level could be the first upside obstacle from current levels. The price of ETH must close above this level on a daily basis, with above-average volumes.

ETH/USD trades below $3k. Source: TradingView

The 50-day EMA (Exponential Moving Average) at $2,880 will provide resistance for ETH bulls next.

The RSI bullishly diverged with the price as it marked higher lows, confirming buying strength near its trendline support. A close above the midline would increase the odds of a further recovery towards the 54-point resistance in the future.

The MACD lines were also on the edge of crossing over to the bullish side. If they cross over, they must still cross the zero-line in order to claim unrestricted bullish momentum.

This, along with the impending RSI limit of 50.75, will most likely act as the key roadblock preventing bulls from hitting the $3,000 mark.

Bulls will have been boosted by the 10-day and 25-day moving averages, which are about to cross.

Related article | TA: Ethereum Breaks Barrier, A Strengthening Case for More Upsides

Featured image from Getty Images, chart from Tradingview.com

About Sean Patterson

Check Also

Price analysis 5/27: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB

Equities markets in the United States rallied sharply on May 25 and 26 but Bitcoin (BTC) and altcoins have not followed a similar trajectory. This suggests that traders are not confident that the crypto markets have bottomed out yet. On-chain analytics firm Glassnode said that the number of Bitcoin whales has been reducing and on May 27, the metric fell to the lowest level since July 2020. On May 24, Miller Value Partners founder and chief investment officer Bill Miller backed Bitcoin investing and called it an “insurance policy against financial catastrophe.” Daily cryptocurrency market performance. Source: Coin360In a note to its clients on May 25, JPMorgan said that Bitcoin’s fall looks like capitulation and they anticipate Bitcoin and the crypto markets to rally. The bank’s analysts believe Bitcoin’s fair value is $38,000, which is about 30% higher than the current level. Could Bitcoin follow the U.S. equities markets higher or will it decouple and continue to languish at lower l..

Leave a Reply

Your email address will not be published. Required fields are marked *