Ethereum tested support at the $ 2,000 level during the widespread decline in the cryptocurrency market last week. Support at the 200 simple moving averages (SMA) on the 4-hour chart and the $ 2,200 level played a critical role in ensuring a sustainable recovery.
On Monday, the bulls tightened their control over the price, breaking the 50 SMA and 100 SMA. Ether narrowed the gap to $ 2,500 as technical data improved. A short-term break above that level has forced the bulls to shift their focus to the recent all-time high of $ 2,600.
However, the pressure from the sellers becomes more evident as the resistance at the $ 2500 level has already been taken. ETH is currently trading at $ 2,554 with a weak bullish trend.
At the same time, the Relative Strength Index (RSI) shows that the bears could get stronger, sabotaging the break to $ 2,600 and $ 3,000. Bearish divergence with price seems to strengthen the bearish outlook. If the RSI does not break the trend line and enter the overbought area, in the near future the pressure will grow when moving upward.
For now, a real break above $ 2,500 has allowed the bulls to focus on the rally above $ 2,600. Trading above this level will trigger massive buy orders as the uptrend approaches $ 3000.
It is worth noting that the Moving Average Convergence Divergence (MACD) has a bullish momentum. The MACD line is increasing the deviation from the signal line, while the indicator is holding in the positive area.
Ethereum daily levels
Spot Rate: $ 2,502
Trend: Moderate Bullish
Volatility: low
Support: $ 2400, $ 2200 and $ 2000
Resistance: $ 2600
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
