The recovery rally started with the double bottom breakout that pumped Ethereum(ETH) price by 23.5% and is on the verge of surpassing the 200-day EMA. However, the fall in trading volume questions the bullish commitment despite the daily surge of 1.5%. Thus, should you consider buying into the 200 DMA breakout opportunity?
key points
- The ETH price forms a bullish engulfing candle and surpasses the $3400 mark
- The buyers gain control of the 200-day DMA stronghold
- The intraday trading volume in Ether is $1.64 Billion, indicating a 34% loss
Source- Tradingview
A reversal rally from the double bottom breakout close to the $2400 mark shows a phenomenal price jump of 23.5% in the last few weeks. The rally breaks above the 50-day DMA and challenges the sellers at the 200-day DMA.
The high momentum trend projects a high likelihood of a $3500 breakout as the $3220 retest fuels the uptrend with the bullish engulfing candlestick of 5.23% rise on 1st April.
Today, the ETH price is up by 1.5%, undermining the higher price rejection observed yesterday due to profit booking after the $3400 breakout.
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The traders can find excellent bullish entry spots at market price as the buying pressure increases despite the 30% fall in the intraday trading volume. If buyers can withhold the trend control, a price jump to $3888 is also on the table.
However, the failure to sustain above the 200-day EMA or $3500 psychological barrier will result in the $3400 fallout and a retracement to $3220.
- Resistance level: $3615 and $3888
- Support levels: $3400 and $3250
Technical Indicator
The rising ADX index(46) slope maintains an overall bullish trend.
However, the daily-RSI slope displays a minor bearish divergence among the 29th March and April 2nd peaks. This divergence suggests a slight weakness in the bullish momentum and could trigger a minor pullback in the near term.
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