The overall cryptocurrency markets led by Bitcoin have shown impressive growth as the market capitalization shot past $2 trillion at the start of the week. However, Ethereum’s mainstream market value continues to grow contributing a large chunk to this expansion. ETH has recovered to break the $3,350 confluence zone after an earlier wobble in its chase higher. The industry’s second-largest asset has had a profitable month, climbing from $1,700 in July to a monthly high past $3,440 in August. Rising from an intraday low of $3,190, the current price of ETH/USD at the time of this post is $3,427. After a period of enormous consolidation, analysts see a bullish run on Ether’s price aiming for the $4,000 psychological barrier. Ether has been the preferred asset among institutional investors this week, with $17.2 million inflows into ETH-based securities. It continues to be a building block for DeFi and NFTs, which helps to keep the price of the primary altcoin stable. These assets are gaining a lot of traction, and they’re largely issued on the Ethereum blockchain.
Key Levels
Resistance Levels: $4,000, $3,700, $3,500
Support Levels: $3,200, $3,000, $2,700
ETH/USD Daily ChartUnlike the rest of the cryptocurrencies, the ETH is a building block, and successfully weathering any storms produced by Bitcoin (BTC). Since late July, the ETH/USD pair has been drifting above the ascending trendline, with only sporadic efforts to break out of the $3,000-$3,350 trading channel. This time, it began the week at $3,247, and today it has reached an intraday at $3,442, increasing the range of changes even further.
Due to the obvious pair’s activity, analysts have made a wide range of forecasts especially with an unhindered run at the $4,000 psychological barrier. ETH/USD prolonged consolidation is the primary reason for an upswing breaking the $3,350 confluence zone. The relative strength index (RSI) is yet overbought giving room for upswings toward the $3,500. Despite this positive view, a breach of the $3,000 support level will result in a lack of bullish impetus.
ETH/USD 4-Hour ChartAfter just closing above the ascending trendline support in prior sessions, the ETH/USD looks so determined to stay above its moving average (MA 50) with the price gearing up to a three-month high past the $3,440 level early on Tuesday. While the short-term moving averages (MA 50 and MA 200) are already below the price, they have yet to show any signs of weakness, maintaining the positive bias.
The RSI managed to extend its uptrend slightly near the 70 points with continued strength showing another promising sign that positive momentum could hold in the short run. If the price falls below the $3,350 resistance turned support level, the decline may stop around the red moving average (MA 50) line and the $3,235 handle at first. Should the bullish scenario continue, the pair will try to break over the resistance at $3,500 to move higher.
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