- Ethereum holds firmly onto support at the 50 SMA on the 4-hour chart.
- ETH begins the uptrend afresh, targeting levels above $1,500.
- A possible double-top pattern could jeopardize the rally to $3,000 and perhaps lead to more losses.
Ethereum has been adamant to follow in Bitcoin’s footsteps over the last couple of weeks. The flagship altcoin executed its own rally even after BTC ran out of steam. The rise to a new all-time high was particularly encouraging to the investors, whose confidence in recovery to levels around $3,000 has increased greatly.
Ethereum seeks higher support before resuming the rally
The recent spike from the support slightly above $1,100 elevated Ethereum to highs around $1,481 (on Coinbase). It was clear that buyers eyed an upswing past $1,500 but Ether lost momentum, leading to a reversal.
The 50 Simple Moving Average on the 4-hour chart has provided support for Ethereum at $1,300. ETH is trading at $1,365 as bulls push for a return to price levels beyond $1,400. The Moving Average Convergence Divergence or MACD suggests that Ethereum is gradually falling back into the hands of the bulls, evidenced by the move into the positive territory.
ETH/USD 4-hour chart
Trading above $1,400 will add credibility to the expected move past $1,500. Moreover, a move of this magnitude could trigger the fear of missing out (FOMO) as investors rush to take advantage of another rally targeting $3,000. According to the Chief Technology Officer at Bitfinex, Paolo Ardoino:
“The Ethereum price has pierced another all-time high. The potential of ether is becoming more and more apparent as it demonstrates a formidable capacity to support many projects. Ethereum is a key platform for building blockchain projects and is an integral part of launching decentralized applications. With DeFi protocols exceeding $19B in TVL and showing no signs of decelerating, we may see the price of ether grow alongside its use.”
Looking at the other side of the fence
It is worth noting that Ethereum may slow down the uptrend if the double-top pattern on the 4-hour chart confirms. This will likely increase the selling pressure in the market, hence delaying the breakout. Moreover, losses may come into play that may retest support at the 50 SMA, 100 SMA, and 200 SMA.