Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, is currently showing signs of a potential uptrend as major indicators turn bullish. This positive momentum market Buying pressure is increasing optimism about the short-term prospects of digital assets.
In this article, as ETH continues to spur significant upside, we take a closer look at the key indicators that indicate this upside potential and discuss what this could mean for Ethereum’s price path.
Technical indicators: Key signals pointing to an uptrend
Currently showing bullish momentum on the 4-hour chart, the ETH price is attempting to move towards the 100-day simple moving average (SMA) and the 4-hour bearish trend line. The digital asset has been able to maintain bullish sentiment since breaking $3,051. As a result of this price stability, Ethereum could start a potential rally towards the $3,360 resistance level.
Additionally, the formation of the 4-hour Relative Strength Index (RSI) suggests that the ETH price may start a bullish move towards the $3,360 resistance level. This is because the signal line of the RSI indicator has maintained a bullish sentiment above 50% and is currently rising towards the overheated buying zone.
On the 1-day chart ETH Price As it is still trading below the 100-day SMA and the downtrend line, it looks like the cryptocurrency is attempting a bullish move towards the $3,360 resistance level.
After breaking above $3,051, Ethereum showed bullish resilience and maintained its pace above this level. With this recent bullish momentum, if ETH can break both the bearish trend line and the 1-day SMA, the digital asset could potentially start a bullish rally.
Finally, if we look closely at the formation of the 1-day RSI on the 1-day chart, we can see that ETH can sustain a bullish rally above the 1-day SMA and the downtrend line towards the resistance level of $3,360. This is because the indicator’s signal line is heading towards the 50% level, out of the overheated sell zone.
Evaluating Ethereum’s Upside Potential
If the Ethereum If it starts rallying towards the $3,360 resistance level and closes above it, it could continue to rise to challenge the $3,659 resistance level. If this level breaks, the digital asset could head further up towards the $3,975 resistance level and possibly other levels above it.
However, if ETH experiences a pullback from $3,360, it will start to decline towards the support level of $3,051. Additionally, the crypto asset may further decline in price to challenge the support target of $2,865, and if this level is broken, it may also challenge other levels below it.
The price of ETH is currently trading at around $3,156 and is up 2.73% over the past day, giving it a market cap of over $379 billion and a trading volume of over $11 billion at the time of writing. The market cap has increased by 2.77% over the past 24 hours and the trading volume has decreased by 27.64%.
Featured image from iStock, charts from Tradingview.com