Ethereum
Certain supporting factors suggest the cryptocurrency market is firmly back in bull mode. However, prices have come a long way in a short time, and with May’s crypto crash less than three months ago, the bulls may be forgiven for harbouring doubts. And as the rally appears to be taking a break, those fears may be increasing.
The Ethereum price has been trading broadly sideways in the last week. But will ETH resume the rally this week, and if so, how high can it go? After bursting above $3,000 earlier this month, Ethereum surged to almost $3,400. However, in the last 5 days, the price has failed to progress, fluctuating on either side of $3,200. Although, this is hardly surprising considering ETH’s impressive performance over the last month. On the 20th of July, the Ethereum price was below $1,800 and looking in bad shape. In the three weeks that followed, ETH has almost doubled in price, increasing its market cap by $175 billion to $389b in the process. So what we can expect this week? Will the rally continue, or is further consolidation necessary for the price to move higher eventually?
Turning to the daily chart, several positive developments are clear. Firstly, the Ethereum price has formed a strong uptrend, which now provides support at $3,080. Furthermore, the recent price action has lifted ETH clear of the major 50, 100, and 200-day moving averages.
However, the inability to clear $3,400 has resulted in horizontal resistance forming. And therefore, $3,400 becomes a significant obstacle for the bulls. Above this barrier, there really isn’t much to stop Ethereum from making a run at the all-time high of $4,626. Although, some indicators suggest this may be an overly optimistic assumption.
Notably, the rally has not attracted the same level of buying interest that was evident at the start of this year’s bull run. Trading volumes over the last three months are considerably lower than the three months before. Furthermore, the Relative Strength Index is rolling over and trending lower. That being said, the trend is your friend, and for now, the Ethereum price is trending higher. And that will remain the case as long as ETH stay above $3,080. Should ETH slip below $3,080, the first stop is the psychological $3,000 level, followed by the 100 DMA at $2,536. Although considering the supportive technicals, I expect the price will retest $3,400 in the next day or two. And how it performs when it gets there could tell us if this rally has a lot more gas left in the tank.
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