Ethereum has seen a significant rally over the last week, securing an appreciation of close to 53%. ETH is currently above the $1500 resistance level and has turned it into a support zone. Although the price of ETH rallied once it passed the $1000 mark the possibility for correction is still possible.
As buying power increased, bullish strength recovered its strength. Once ETH reached $1200, the invalidation of bearish theory began. The bulls can propel the price higher if the coin is above $1500.
This rally also was caused by bullish sentiments that revolve around the Merge, which is expected in September. Although there is potential for the coin’s price to rise to $2000, there are still many obstacles that ETH must overcome before that happens.
It has traded on an ascending trendline, and could soon return to $1660 in its chart. Global cryptocurrency market capitalization today stands at $1.12 Trillion 4.6%In the last 24hrs, there has been positive change.
Ethereum Price Analysis: 4 Hour Chart
At the time this article was written, ETH traded at $1600. Altcoin king has crossed the $1500 threshold. The overhead resistance of the coin stood at $1660. However, buyers’ support could propel ETH towards $1660. The $1745 price limit and $1800 were also important.
The $2000 mark can be added to the Ethereum chart once the coin crosses the $1800 threshold. The first support level for Ethereum would be $1300, and the next $1200 if the coin experiences a correction. The volume of Ethereum transactions in the previous session increased, indicating that Ethereum’s buying power remained strong.
Technical Analysis
ETH’s bulls have caused buyers to re-enter the market. In the last few weeks, the altcoin reached the overbought area a few times. Relative Strength Index was in an uptrend and neared the 70 mark, meaning that buyers outnumbered sellers.
The 20-SMA was in Ethereum’s favor, which indicates that the buyers are driving price momentum. The 50-SMA line and the 200-SMA line were both above Ethereum, which is a sign of an excessive bullish market force.
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The other indicators showed an increase in buying power, but there have been mixed signals. The Moving Average Convergence Divergence represents price momentum, trend reversals and the Moving Average Convergence Divergence. MACD was subject to a bearish crossover, and displayed red histograms.
These histograms in red are an indicator of price trends changing and also a sell signal for altcoin. Bollinger Bands which signify volatility are still wide. Bollinger Bands that indicate volatility remained wide signify increased risk of price volatility, which could mean Ethereum may experience price fluctuations.
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Featured Image from UnSplash. Chart by TradingView.com