Ethereum
Ethereum Prepares for Gains: These Bullish Indicators Signal Upside Potential
Bayan Lepas, Penang, Malaysia – February 20, 2022: Ethereum coin token with candlestick chart background.
Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is currently showing signs of a potential upward move as key indicators turn bullish. This positive momentum that could be triggered by an increase in the walk Buying pressure has led to growing optimism about the digital asset’s short-term outlook.
In this article, as ETH continues to prepare for significant gains, we will dive into the key indicators signaling this upside potential and discuss what this could mean for Ethereum’s price trajectory.
Technical indicators: key signals indicating a rise
Currently, ETH price on the 4-hour chart with bullish momentum is attempting a move towards the 100-day simple moving average (SMA) and the 4-hour bearish trend line. The digital asset has been able to maintain its bullish sentiment since it broke above $3,051. Due to this price stability, Ethereum could start a potential rally towards the $3,360 resistance level.
Furthermore, the formation of the 4-hour Relative Strength Index (RSI) suggests that ETH price could start an upward move towards the resistance level of $3,360 as the signal line of the RSI indicator has maintained its bullish sentiment above 50% and is currently rising towards the overbought zone.
On the 1-day chart, although the ETH price Still trading below the 100-day moving average and the downtrend line, it can be observed that the crypto asset is attempting an upward move towards the resistance level of $3,360.
After breaking above $3,051, Ethereum has shown bullish resilience, maintaining its momentum above this level. With this recent bullish momentum, if ETH could break above both the downtrend line and the 1-day moving average, the digital asset could potentially start a bullish rally.
Finally, on the daily chart, a close look at the daily RSI formation reveals that ETH could sustain its bullish rally above the daily SMA and the downtrend line towards the $3,360 resistance mark as the indicator’s signal line has broken out of the oversold zone and is heading towards the 50% level.
Assessing Ethereum’s Upside Potential
If Ethereum Bitcoin price starts to rise towards the $3,360 resistance level and closes above it. It may continue to rise to challenge the $3,659 resistance. When this level is broken, the digital asset may see a further price increase towards the $3,975 resistance level and possibly other levels above.
However, if ETH suffers a pullback to $3,360, it will start to decline towards the $3,051 support level. Moreover, the price of the crypto asset could fall further to challenge the $2,865 support target and perhaps further lower levels if this level is breached.
ETH price is currently trading at around $3,156 and has increased by 2.73% in the last day with a market cap of over $379 billion and a trading volume of over $11 billion at the time of writing. There has been a 24-hour increase in its market cap of 2.77% and a decrease of 27.64% in trading volume.
Featured image from iStock, chart from Tradingview.com