- Ethereum leads the altcoin season after jumping above $1,800 to trade a new record high.
- Investors speculate that Ethereum will rally to $2,000 in the near term before completing the leg up to $3,000.
- ETH will correct if the support at $1,800 fails to hold.
Ethereum is currently holding above $1,800 after extending the bullish leg from the short term support at $1,700. The flagship altcoin has been consistent in its recovery since January despite the frequent minor retracements. It is essential to realize that bull markets also come with their fair share of corrections. Nonetheless, the general trend has remained upwards, with Ether eying $2,000 in the short-term and $3,000 in the medium term.
A comprehensive glance at the 4-hour chart hints at the cryptoasset holding onto the bullish impulse a while longer. For instance, Ethereum is trading above all the applied moving averages, including the 50 Simple Moving Average, the 100 SMA, and the 200 SMA. The gap made by the 50 SMA above the other two moving averages suggests that ETH is generally in the hands of the bulls.
Simultaneously, the Moving Average Convergence Divergence (MACD) reinforces the bullish outlook. Note that the MACD line (blue) recently crossed above the signal line. If the divergence between the two lines expands, we can expect Ether to rally toward $2,000 in the short term.
Similarly, closing the day above $1,800 would keep the investor interest high. The remaining journey to $2,000 and later to $3,000 will ride on increased uptake of the pioneer smart contract token.
ETH/USD 4-hour chart
On the other hand, declines will come into play if the immediate support at $1,800 is lost. Ethereum will start a hunt for higher support, preferably at $1,700. However, if the bearish leg becomes more robust, the 50 SMA currently at $1,635 and the 100 SMA holding at $1,500 will come to the bulls’ rescue.
Spot rate: $1,787
Relative change: 15
Percentage change: 0.9%
Trend: Short term bearish