Ethereum (ETH) recently discovered support around $2,867, which has sparked the potential for an uptrend. Does this signify the end of the correction? ETH has experienced a visible correction phase in recent weeks. However, the recent rebound from crucial support levels suggests a possible reversal of this trend.
Support Level for Ethereum
The price of Ethereum has recently rebounded from the 0.382 Fibonacci support level at approximately $2,867. After the initial jump, it returned to this support level. Nevertheless, during the recovery period over the past few days, Ethereum has displayed a consistent upward trend. Currently, Ethereum is facing significant resistance at the 50-day exponential moving average (EMA) around $3,277. Notable Fibonacci resistance levels are situated between $3,320 and $3,650.
It is worth noting that the correction phase may conclude by surpassing the golden ratio resistance at $3,650. Breaking the parallel descending channel could indicate a reversal to an upward trend for Ethereum. In such a scenario, Ethereum could potentially target or even exceed its previous high of $4,095. Furthermore, the daily chart EMAs continue to exhibit the golden ratio.
ETH Current Data
Moreover, the bullish crossover of the moving average convergence/divergence (MACD) lines and the recent upward movement of the MACD histogram could further support the bullish outlook. However, the relative strength index (RSI) remains neutral, providing no indication of upward or downward momentum. In Ethereum’s 4-hour chart, a death cross has recently appeared, strengthening the short-term downward trend.
Nevertheless, if Ethereum maintains its upward momentum and surpasses the 0.382 Fibonacci resistance level at $3,320, it could complete the golden ratio formation of the EMAs. This development could signal a short-term reversal to an upward trend. Additionally, current indicators point towards a bullish outlook. The MACD histogram is trending upward alongside the bullish MACD lines, while the RSI remains in the neutral zone.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
