- Ethereum is on the verge of a breakout, but first, it must break the 50-day resistance.
- A step beyond the ascending channel’s middle boundary will open the door for gains aiming for $2,000.
Ethereum managed to sustain the uptrend above $1,400, avoiding the drop to $1,200. Recovery, although gradual, seems to be coming into the picture toward the end of the Asian session on Wednesday. Ether is exchanging hands at $1,520 while bulls fight to break above an immediate but crucial resistance level.
The daily chart highlights the resistance brought about by the 50 Simple Moving Average (SMA). If bulls overcome this hurdle, the journey toward $1,600 will become apparent. On the other hand, bulls must focus on stepping above the seller congestion zone at $1,600 to pave the way for gains eying $2,000.
The bullish outlook has been validated by the Relative Strength Index (RSI) as the indicator slowly approached the midline. A further movement toward the overbought area will cement the bulls’ influence over the price.
Simultaneously, Ether is trading within the confines of an ascending parallel channel. The pattern’s support played a key role in stopping the potential losses to $1,200 earlier this week. Moreover, buyers are using the lower edge of the channel as a springboard to higher levels. Note that trading above the channel’s middle’s boundary resistance might trigger massive buy orders as Ethereum is catapulted toward the coveted $2,000.
ETH/USD daily chart
On the other hand, the remarkable breakout may fail to occur if the immediate 50-day resistance remains intact. Simultaneously, if overhead pressure increases, Ethereum will retest the support at the channel’s lower edge. If this buyer congestion zone is shattered, ETH will spiral toward $1,200 in search of formidable support.
Ethereum intraday levels
Spot rate: $1,520
Relative change: 30
Percentage change: 2%