John Isige
The largest smart contracts token is on the cusp of breaking out and closing in the psychological resistance at $2,000. Ethereum price has over the last week been battling increasing selling activities as investors react to rising regulatory pressure. On the bright side, support at $1,560 slowed down bearish advances, paving the way for an ongoing bounce at $1,640.
Key Levels To Watch As Ethereum Price Steadies Recovery
Ethereum price successfully pierced resistance at the upper falling trendline on the second attempt during the mid-February rebound from support at $1,466. However, Ether only managed to peak at $1,740 before it succumbed to overhead pressure from early last week.
Now, the second-largest crypto, boasting $197 billion in market capitalization is attempting another breakout above the same trend line, which if efficacious, could propel Ether to tag the next hurdle at $1,800 and bring $2,000 within reach.
This bullish narrative hails from support at $1,560 as provided by the 50-day Exponential Moving Average (EMA) (line in red) and is reinforced by the 200-day EMA (line in purple), as elucidated by the daily time frame chart below.
At the same time, investors seem ready to embrace a golden cross formed when the 50-day EMA crossed above the 200-day EMA. Traders look out for this pattern to ascertain the long-term bullish outlook in the asset being traded.
Ethereum price formed the last golden cross in May 2021, followed by a massive rally that later built the foundational support for 2021’s bull market. Although this pattern’s impact might not be immediate, it helps to confirm Ethereum price has the potential to uphold the bullish outlook in the long run.
Traders looking forward to buying Ethereum as it recovers toward $2,000 may consider waiting for the Moving Average Convergence Divergence (MACD) indicator to validate another buy signal. That said, this call to buy ETH manifest with the MACD line in blue flips above the signal line in red.
For now, Ethereum is yet to determine which path it would take down resistance at $2,000. Therefore, traders must watch ETH’s behavior around $1,640 – resistance highlighted by the upper falling trend line. As mentioned, breaking and holding above this level could quickly push ETH price to close the gap to $2,000.
On the downside, Ethereum price may be forced to retest support at $1,562 as highlighted by the 50-day EMA. Chances are bears will respect this buyer congestion zone, keeping in mind, the 200-day EMA holds marginally to the downside. If push comes to shove, Ether may resolve to seek solid support at $1,400.
ETH Addresses In Profit Hold Firm as Ethereum Price Breakout Beckons
Despite the buildup of overhead pressure on ETH, investors experiencing unrealized profit have no plans of closing their positions, at least not for now. On-chain data from IntoTheBlock shows 2.58 million addresses previously purchased 11.42 million ETH between $1,590 and $1,638.
As Ethereum struggles to sustain the uptrend investors in that range will likely throw their weight behind the price for a bullish outcome. Moreover, the massive buyer congestion has the potential to push bears out of control.
On the upside, Ethereum price is facing relatively weak seller congestion zones, as shown by the IOMAP model. With a minor push, ETH could quickly lift above $1,800 and open the door to gains aiming for $2,000.
Ethereum Alternatives To Buy Today
Before you start accumulating Ethereum, do you know about the best altcoins whose presales are selling out quickly in 2023? Investors are diversifying their portfolios with the best crypto presales, promising a better risk-reward ratio.
Fight Out (FGHT), for instance, is a leading move-to-earn project currently conducting a presale ahead of its initial exchange listing expected in April. Investors scooping up this Web3 fitness platform have so far raised $4.78 million.
FGHT is the token powering Fight Out’s ecosystem built around supporting the global population to live healthy lifestyles without breaking the bank by buying expensive NFTs. Fight Out is using Web3 solutions to transition the vast Web2 audience to Web3 products like the metaverse.
Similarly, investors may want to diversify their crypto portfolios with Metropoly (METRO), the first NFT marketplace supporting the global real estate industry. The team at Metropoly is tapping the power of Web3 to channel investment in real estate while eliminating third parties like banks.
Moreover, with Metropoly, investors no longer need to worry about hidden fees or geographical limits. For the first time, people can invest in global properties in under 20 seconds compared to the tiresome norm of 60 days or more.
With a minimum of $100, one can buy an NFT and receive a monthly rental income. So far, METRO’s presale has raised $558k – 56% of the minimum set target.
Related Articles:
- Bitcoin Price Prediction – After Sunday Bounce Can BTC Get a Green Candle This Week?
- 3 Reasons Why Metropoly Has Already Soared Past $500k and Why It Can 10X
- SEC’s Gensler Reckons Every Crypto Except Bitcoin is a Security – Is he Going to Cripple the US Industry?
Fight Out - Next Big Train-to-Earn Crypto
- Backed by LBank Labs, Transak
- Earn Rewards for Working Out
- Level Up and Compete in the Metaverse
- Presale Live Now - $5M Raised
- Real-World Community, Gym Chain
This article was written for Business 2 Community by John Isige.
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