Ethereum [ETH]: $2K-level does not seem far off, thanks to…

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Ethereum [ETH] final­ly sus­tained its bull­ish track as its recent ral­lies altered the long-term trend to exhib­it a buy­ing edge. With the 200 EMA assum­ing a rebound zone for the bear­ish pulls, the king alt now saw a volatile break above the point of Con­trol (POC, red).

In the four-hour time­frame, the two-week trend­line resis­tance (white) coin­cid­ed with the $1,900-zone ceil­ing to cre­ate a near-tern barrier.

Should this resis­tance stand stur­dy, it could reject high­er prices for a while before a like­ly bull revival. At press time, ETH trad­ed at $1,886.5, up by 11.22% in the last 24 hours.

ETH 4‑hour Chart

Source: Trad­ingView, ETH/USD

ETH’s growth in the last month has expe­dit­ed the altcoin’s efforts to change the broad­er nar­ra­tive in favor of bulls. As a result, the EMA rib­bons have been north­bound while sup­port­ing ETH’s 87% revival from its mid-July lows.

Fur­ther­more, the recent buy­ing come­back entailed the alt’s growth toward its two-month high on 11 August.

But with the bears pos­ing hur­dles near the $1900 region, ETH saw a slight rejec­tion of high­er prices. Mean­while, ETH saw a near­ly 60% incline in trad­ing vol­umes in the last 24 hours. This increase has fur­ther reaf­firmed the near-term bull­ish strength.

A rebound from the $1,900 lev­el can help the bears retest the $1,812-$1,744 range in the com­ing ses­sions. Where­as, an even­tu­al break above the trend­line resis­tance could pave a path for a test of the two-month trend­line resis­tance (yel­low, dashed) before a plau­si­ble slowdown. 

In this case, the poten­tial tar­get would lie in the $1,990 zone.

Rationale

Source: Trad­ingView, ETH/USD

The Rel­a­tive Strength Index (RSI) moved along the thresh­old of the over­bought posi­tion at press time. Any rever­sal from this lev­el can hint at near-term ease in buy­ing power.

To top this off, the Chaikin Mon­ey Flow (CMF) marked low­er peaks dur­ing the recent gains and marked a bear­ish diver­gence with price. Nev­er­the­less, the AO lines depict­ed a strong buy­ing momen­tum, espe­cial­ly after the recent bull­ish twin peak setup.

Conclusion

Owing to the con­flu­ence of the hor­i­zon­tal and trend­line resis­tance in the $1,900 zone, ETH could see a near-term set­back before pick­ing itself up again. A close above this zone could con­firm the upside trig­ger. The tar­gets would remain the same as dis­cussed above.

Final­ly, investors/traders need to watch out for Bitcoin’s [BTC] move­ment. This is because ETH shares a stag­ger­ing 95% 30-day cor­re­la­tion with the king coin.

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