“Is Ethereum’s battle with the $1805 resistance a sign of a potential breakout or a looming retracement? Traders are left pondering their next move amidst this captivating struggle.”
Ethereum (ETH) Hits a 10-Week High of $1852
Ethereum, the second-largest cryptocurrency by market capitalization, has been displaying resilience against bearish market trends. Just hours ago, it surged to a 10-week high, reaching $1,852. This significant rally followed a day of strong market performance, with the total market capitalization surging by over 8%. Even Bitcoin, the leading cryptocurrency, managed to climb above $35,000 during this bullish run.
However, Ethereum remains volatile, with a 3% decline in the past 24 hours, currently trading at $1,780. Nevertheless, in the seven-day timeline, ETH witnessed a notable 12% surge. This volatile momentum impacted investor sentiment, as reflected in a decline in trading volume over the past 24 hours, down by 2.67% to $214 million.
Notably, the consistent accumulation of Ethereum by large market participants, often referred to as “whales,” may signal a sustained upward trajectory. According to data from EtherScan, one of these prominent whales acquired more than 20,000 ETH, obtaining 17,000 ETH through a decentralized exchange (DEX) and withdrawing an additional 3,000 ETH from a centralized exchange.
In addition, another whale withdrew over 10,000 ETH from Binance (BNB) and subsequently utilized these funds to take a long position on the asset within various DeFi platforms.
Will the ETH Bulls Take Over?
A closer analysis of Ethereum’s current price movements indicates the presence of bullish forces. The 9-day exponential moving average (EMA) is positioned below the current trading price at $1,690. Simultaneously, the daily relative strength index (RSI) stands at 72, suggesting that the asset is in an oversold territory.
However, Ethereum faces a critical resistance at the $1,805 level, and its failure to surpass this could result in a downward trend. Initial support on the downside is expected near the $1,780 level, followed by the crucial $1,750 support and the trend line zone. A break below the $1,750 support might drive the price even lower, potentially leading Ether toward the $1,720 level. Further losses could push it down to the $1,700 level, approaching the 100-hourly Simple Moving Average.
Overall, Ethereum’s recent surge to a 10-week high showcases its resilience in the face of market volatility. With the accumulation of ETH by prominent investors and the presence of bullish indicators, the future looks promising for this leading cryptocurrency. However, investors should remain cautious and monitor key support and resistance levels to navigate the market effectively.