Ethereum is on a steady upward trajectory, but it has had its share of bumps. However, Ethereum is still an exciting digital asset and this has been proven by its recent recovery. Even though the cryptocurrency has landed above $3,000 it is still far from its high of nearly $5,000. But, long-term indicators are favorable for Ethereum.
Beat Moving Averages
Since December’s crash, Ethereum prices have traded well below moving averages such as the 50- and 100 day moving averages. This was mostly due to the ongoing downtrend, which rocked the crypto market and the digital asset. With the recent recovery, Ethereum was able to take significant price gains and is now above these critical moving averages.
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Ethereum had risen above its 20 and 50-day moving mean but struggled to reach the 100 day counterpart. Both the 50-day and 20-day indicators were bullish on Ethereum in the short term. However, the prospects for the longer-term remain dim because it traded below the 100 day moving average.
Source : ETHUSD on tradingView.com| Source: ETHUSD on TradingView.com
ETH managed to maintain its recovery trend. It finally reached $3,000. It had firmly established its position over 100- and 200-day moving mean. It is now in bull territory long-term.
ETH continues to do well on the year-to date (YTD) chart. It is well above its YTD moving median.
Ethereum: The point to beat
As with all cryptocurrency, there will always be challenges in any recovery trend. The resistance posed above the $3,000.500 mark by bears is a major obstacle for Ethereum. The resistance at the $3,500 level is hard to overcome for Ethereum. This was after Ethereum tried to consolidate its position over this mark.
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Despite indicators turning in the buyers’ favor, it is still difficult to overcome these resistance points. It will require a strong push to momentum in order for the digital asset to cross the $3.542 resistance mark. Bears will continue to push for another climb up at the $3.643 level. This is where you will find the prized $3,807.
Ethereum is doing well in the short-term, as shown by its market position. It is currently trading at $3.459 as of the writing, and it remains the 2nd-largest cryptocurrency according to market cap.
Featured Image from Coingape. Chart by TradingView.com