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With almost 100% gain over the last month by Ethereum(ETH), prices challenge the $2000 psychological mark in an attempt to reclaim the 200-day EMA slope. Moreover, the bullish crossover of the EMAs projects a potential of an uptrend continuation teasing a rounding bottom breakout. However, should you be bullish despite the higher price rejection candles or expect a bearish retracement?
- The ETH price aims for a 20% jump in buyers to beat the supply pressure at the $2000 mark.
- The bullish crossover of the 20 and 100-day EMA projects a bullish trend continuation.
- The intraday trading volume in Ethereum is $12.88 Billion, indicating a 30% loss.
The ETH/USD pair chart shows the rounding bottom reversal after taking bullish support at the psychological mark of $1000. The bull run has doubled the market price of Ether within the last month and breached the 50 and 100-day EMA.
The lack of a bearish candle in the last four days reflects a solid bull run, approaching $2000 psychological mark. However, the higher price rejection with the declining trend in the intraday trading volume warns of a bearish retracement.
Hence traders can expect a bearish retracement from the supply zone at $2000 to retest the support curve of the rounding bottom pattern. However, the bullish crossover of the 20 and 100-day EMA projects a potential uptrend continuation avoiding a drop below the bullish pattern.
Considering the upcoming trend breaks above the supply zone, the breakout rally will exceed the 200-day EMA to test the overhead resistance of $2400.
On a contrary note, the bullish theory will be nullified if the retracement rally breaks below the $1900 support level.
DMI- The increasing bullish gap between the DI lines with the rising ADX line represents a bullish trend gradually gaining momentum.
RSI– the daily RSI line exceeds into the overbought boundary after taking support at the 14-day SMA.
- Resistance level- $2000, and $2168
- Support level- $1900 and $1739
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.