After breaking above $1000, Ethereum rallied and gained 50% in just six days. Many are calling for the $2K price target. However, there is significant resistance before that.
The Daily Chart
The bulls moved closer to $2,000. ETH managed to rise above $1280, breaking out of its sideways trend after a month. It is important to remember that the Momentum indicator’s positive divergence also caused the index break the baseline. The market has dropped aggressively each time it crossed the yellow descending line (in yellow) in the past three instances. Momentum is currently at the yellow line. If it can break above that, bullish sentiment will likely rise further.
To create a positive market trend, the bulls must break through the resistance zone of $1,500-1.700 (in red). This could propel Ethereum to $2,000 and possibly confirm a trend reversal in the mid-term, if it is successful.
Key Support Levels: $1280 and $1000 Key Resistance Levels : $1500 & 1700
Daily Moving Averages: MA20 MA50 MA100 MA1335 MA100 MA100 MA200 MA200 MA25: $2456
The ETH/BTC Chart
ETH performed better this week than BTC and experienced an upside breakout during the monthly consolidation phase. After breaking the horizontal resistance of 0.065 BTC in yellow, the price now touches the 200-day moving mean line (in white).
As long as buyers keep the price above 0.065 BTC, the structure is bullish. ETH currently needs more momentum to break through the MA200. Any correction towards 0.065 is a healthy chance to get the needed momentum.
Analyse of Sentiment
Taker Buy-Sell Ratio
Definition: The sum of the buying volume divided by the selling volume of takers for perpetual swap trades. If the value is greater than 1, it indicates that bullish sentiment prevails. If the value is below 1, it means that the bearish sentiment prevails.
After the market crash, takers filled more buy orders. This resulted in bullish sentiment in the derivatives market. This metric is now at its highest point since 2020. This was the start of a historic bull market for Ethereum. Many positions in the derivatives market are very hot and were mostly liquidated within the last 24 hours.
Marla Brooks – Financial Analysis
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