With a strong performance, Ethereum has risen above key resistance levels and is not showing any signs of slowing down. The most notable technical development is the 26-day EMA’s cross above the 200-day EMA, a classic momentum indicator that validates the strength of the current rally and provides access to even higher price targets.
The daily chart shows a clear break of the $2,500 resistance level, which was followed by a steep ascent to the current price range of about $2,710. The bulls have been unrelenting, pushing through small corrections and profit-taking while consistently hitting higher highs and lower lows.
The 50 and 100-day EMAs, which had been serving as the asset’s ceiling, have notably been reclaimed by the price. We can plainly see that there has been a change in momentum because those levels are now well below ETH. With an RSI above 70 and indicating possible overbought conditions, the market is heating up.
The extreme bullish volume that accompanied this breakout, however, indicates that there is still potential for ETH to rise before a noticeable cooling off. The psychological and technical barrier at $3,000 will be the next significant milestone. This goal becomes more feasible if Ethereum can keep up its current pace and avoid a significant rejection close to $2,800.
Notably, the $3,000 mark previously served as both support and resistance, so it will undoubtedly be a natural magnet for price movement in the upcoming weeks. Short-term traders should keep an eye on the $2,600-$2,800 range for any possible consolidations or pullbacks prior to the subsequent upward leg.
The overall volume profile, the golden cross of the EMAs and the chart structure all point to Ethereum being poised for future gains, barring any major market shocks. If this rally continues, Ethereum may soon be approaching $3,000, reminding people of its past bull run highs and possibly paving the way for a larger breakout later this year.
Leave a Reply