Ethereum [ETH]: $2K-level does not seem far off, thanks to…

by Daniel Roberts
7 ways to make with crypto

Ethereum [ETH]: $2K-level does not seem far off, thanks to…

Ethereum [ETH] finally sustained its bullish track as its recent rallies altered the long-term trend to exhibit a buying edge. With the 200 EMA assuming a rebound zone for the bearish pulls, the king alt now saw a volatile break above the point of Control (POC, red).

In the four-hour timeframe, the two-week trendline resistance (white) coincided with the $1,900-zone ceiling to create a near-tern barrier.

Should this resistance stand sturdy, it could reject higher prices for a while before a likely bull revival. At press time, ETH traded at $1,886.5, up by 11.22% in the last 24 hours.

ETH 4-hour Chart

Ethereum [ETH]: $2K-level does not seem far off, thanks to…

ETH’s growth in the last month has expedited the altcoin’s efforts to change the broader narrative in favor of bulls. As a result, the EMA ribbons have been northbound while supporting ETH’s 87% revival from its mid-July lows.

Furthermore, the recent buying comeback entailed the alt’s growth toward its two-month high on 11 August.

But with the bears posing hurdles near the $1900 region, ETH saw a slight rejection of higher prices. Meanwhile, ETH saw a nearly 60% incline in trading volumes in the last 24 hours. This increase has further reaffirmed the near-term bullish strength.

A rebound from the $1,900 level can help the bears retest the $1,812-$1,744 range in the coming sessions. Whereas, an eventual break above the trendline resistance could pave a path for a test of the two-month trendline resistance (yellow, dashed) before a plausible slowdown.

In this case, the potential target would lie in the $1,990 zone.

Rationale

Ethereum [ETH]: $2K-level does not seem far off, thanks to…

The Relative Strength Index (RSI) moved along the threshold of the overbought position at press time. Any reversal from this level can hint at near-term ease in buying power.

To top this off, the Chaikin Money Flow (CMF) marked lower peaks during the recent gains and marked a bearish divergence with price. Nevertheless, the AO lines depicted a strong buying momentum, especially after the recent bullish twin peak setup.

Conclusion

Owing to the confluence of the horizontal and trendline resistance in the $1,900 zone, ETH could see a near-term setback before picking itself up again. A close above this zone could confirm the upside trigger. The targets would remain the same as discussed above.

Finally, investors/traders need to watch out for Bitcoin’s [BTC] movement. This is because ETH shares a staggering 95% 30-day correlation with the king coin.

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