Ethereum finally broke out of a falling channel after increasing steadily for four weeks. While looking so bullish on the daily chart, it currently sits at a vital resistance level, gathering momentum to advance higher.
Last month, Ethereum found support above the $1,500 level after undergoing a correction for months. The price bounced back and remained strong throughout that month above the $1,800 level.
After days of consolidation around the upper boundary of a channel, the price surged yesterday and flipped through $2,000 to test the crucial resistance level of $2,141 – marked as the yearly high on April 16.
That single daily surge brought a full recovery to the market after 7 months of trading. A bigger price movement should be expected if the price further breaks up in the coming hours. Otherwise, it may lose steam until it finds a close support to foot fresh rally.
The only thing that can bring the bears back right lies in a reversal from the current trading level. Even if that occurs, it must drop below October’s low before we can validate bearish. But as it stands now, the bulls are gaining control from a mid-term perspective.
So far, Ethereum has seen a 30% growth in the past month with a traded volume of over $25 billion in the last 24 hours. Its dominance stands at 18.2% after reaching a market cap of $255 billion at the time of writing.
ETH’s Key Level To Watch
Now that the price is testing a crucial resistance, a further surge could send the price to a new yearly high of $2,200 and $2,300. Above this level lies $2,400.
And if the price drops from here, the retracement level to keep in mind is $2,030, followed by $1,914. It may provide more discount to the $1,800 and $1,746 price zones if the price dips.
Key Resistance Levels: $2,200, $2,300, $2,400
Key Support Levels: $2,030, $1,914, $1,800
- Spot Price: $2,131
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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