Ethereum (ETH) Rally Beyond $3000, Will You Buy Now?

By Rekha chauhan
February 7, 2022 Updated February 7, 2022
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Ethereum Price Analysis: Bloodbath On Crypto Market Triggers Fallout From Descending Wedge Pattern

Ethereum (ETH) price continues to ride higher at the start of the new trading week. U.S stock index futures opened higher after a volatile week of mixed earning results from big technology companies. Investors jumped on riskier assets on improved risk appetite.

  • Ethereum (ETH) price rises for a fourth straight day on Monday.
  • Price surged 35% from January lows of $2,160.
  • Expect more upside momentum if the price gives a decisive close above $3,400.

ETH Challenges 200 DMA at $3,540

The recent price action on the daily chart suggests that ETH could jump toward 200 DMA at $3,540. Ethereum’s native token Ether has scaled down almost 50% from the November 30 highs at $4,759.0.

Source: Trading view

The descending trend line from the mentioned level is acting as a strong barrier for the upside momentum. A decisive close above the resistance line shall seek the next upside target at the 200 DMA at $3,540.

In the past, as the price descend below the moving average, it recorded a fall of 35%. ETH record a single day biggest fall on January 21, as it plunged in a single day.

Furthermore, after the consolidation for nearly a week at the January lows of $2.160, ETH took a flight toward the psychological $3,000 level.

To support the bullish argument investors could look at the Daily Relative Strength Index (RSI), which holds at 56. A reading above 50 is a sign of underlying bullish sentiment. The 24-hour trading volume also rose nearly 29% at $13,091,072,039.

Beyond the 200 DMA milestone, ETH bulls would look up to the $4,000 horizontal resistance line.

Looking at another possibility, the formation of consecutive ‘Doji’ candlesticks indicates a constant conflict between bulls and bears. If the price breaks below the $2,950, which is the closing of the previous two days’ candles then it could invalidate the bullish thesis.

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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