The cryptocurrency market is posting another week of robust trading volumes, this time driven by Ethereum (ETH), the market’s second-largest asset. The technical picture of the ETH/USD can be best captured on a daily time frame using the moving averages (MA 50 and MA 200), the relative strength index (RSI), and price divergences. To counteract the likelihood of a sell-off past $2,445 lows reached on Tuesday, ETH prices jumped 8.5 percent to $2,771 on Wednesday. Investors might still place extra bids for the cryptocurrency after Ethereum’s London hard fork upgrade today, per the uptick. At the time of this post, the price of ETH/USD retraced lower to $2,576 intraday low on Thursday. However, the no.2 crypto has been on an upward trend since the start of the week, and following the upgrade, we might see bulls propel the price to $3,000 in the coming days. The London Hard Fork, on the Ethereum mainnet, is a factor in Ethereum’s outstanding price performance. The update is designed to keep transaction costs (gas fees) stable during times of network congestion.
Key Levels
Resistance Levels: $4,000, $3,500, $3,000
Support Levels: $2,500, $2,000, $1,500
ETH/USD Daily ChartThe ETH/USD has recently gained a surge of bullish momentum as a result of the latest positive fundamentals of Ethereum Improvement Proposals (EIPs) that will change the way transactions get processed on the network which has helped to offset the pair’s neutral-to-bearish bias. Despite earlier bearish events in the pair, the falling moving averages (MA 50) just completed convergence with the moving average (MA 200) encouraging positive price movement.
To the upside, preliminary friction could emanate from the resistance zone shaped between the $2,800 and $3,000 levels, while the RSI is ranging in the bullish zone. If the bulls sustain a positive charge as it approaches the $2,800 level, additional buying interest will continue. Otherwise, sellers may retake control and drive the price towards the moving averages (MA 50 and MA 200) at $2,200 which could prove to be durable support. Negative pressures might lower the pair towards the $1,800 barrier if they gain a clear edge.
ETH/USD 4-Hour ChartWhen compared to the daily chart, the ETH/USD pair on the lower time frame began to rise steadily from the $1,718 level above the $2,000 resistance zone. The ETH/USD pair even broke through the $2,500 barrier level to enter the positive territory. The bulls drove the pair over the $2,700 mark, before beginning a mild correction lower, the pair reached a high of $2,771. The price of Ethereum has been closely following that of Bitcoin. ETH, on the other hand, appears to have briefly broken free despite BTC’s drop.
There was a break below the $2,500 level, but there is strong support waiting near the $2,450 zone. Also, a key bullish trend line forming with support near the $2,400 level on the 4-hour chart. Any more losses might lead ETH/USD towards the moving average (MA 200) at the $2,200 zone. On the upside, the $2,800 level serves as initial resistance. A decisive break above the $2,800 resistance level might pave the way for a stronger rally to the $3,000 level.
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