It has now been a little over two months since the May 19th crypto crash, but market movement still seems chaotic. Judging by Bitcoin’s downtrend, sellers are still dominating the global cryptocurrency market. The world’s largest ancient Ethereum was no exception to this trend and reflected the movement of the king coin.
BTC’s recent rebound from $ 30,000 renewed hopes for a broader recovery and sparked some important developments in the Ethereum market. At the time of writing, ETH was trading at $ 2,200, up 1.76% over the past 24 hours.
Ethereum daily chart
ETH’s USD 1,700 to 1,850 support zone has been tested five times since May 19, and has rallied each time. In the most recent bounce, ETH saw a 26% surge in just four days as prices surged above their 20 (red) and 200 (green) simple moving average lines. However, there was still a downtrend active in the ETH market as prices fluctuated within the confines of a descending channel. To break away from this pattern, buyers would need to target a move above the USD 2,200 resistance, which would confirm a bullish result in the coming days.
50-SMA to limit the uptrend?
The way forward was not that easy for bulls, however. The 50 SMA (yellow) has refused multiple breakout attempts in the past few months and a similar result could follow as it coincided with the USD 2,200 resistance. A failed breakout attempt could result in a retracement towards USD 2,000 and a half line of its pattern. Conversely, a successful close above this range could push prices towards the upper trendline and the $ 2,400 mark.
Do cops have an advantage?
The Relative Strength Index closed above 50-53 for the first time in over two months due to buying pressure and was a positive sign for ETH. Holding above this neutral zone in the coming days would add weight to a sustained rise in the coming days. The Squeeze Momentum Indicator detected a “squeeze release” and observed a movement across the half-line. This indicates a possible increase in buying pressure with a simultaneous increase in volatility. The upward trend of the MACD was also confirmed with the price action of the ETH and there were no divergences in the game.
Several signs suggested that ETH would hit higher levels as a new week entered. A spike above $ 2,400 would be a sign of bullish strength and a breakout of the downward ETH channel. Until such a development occurs, one must act with caution as the market was also open to a decline back towards USD 2,000.