This article is also available in Spanish.
The cryptocurrency market is showing tentative signs of recovery, with leading assets like Ethereum (ETH) making modest gains over the past 24 hours. After a sharp decline that saw ETH’s price drop to $2,154 last Friday, the digital asset is now closing in on the $2,400 mark, sparking optimism among investors.
Signs of an imminent breakout to the upside?
In a recent social media post On X (formerly Twitter), market expert Jesse Olson highlighted several bullish indicators on Ethereum’s 8-hour chart, suggesting a potential continuation of this rally. One of the key signals is a pending buy indication, which could facilitate a rebound to previously lost levels if macroeconomic conditions align favorably.
Olson also points out a bullish divergence on the 8-hour chart, which typically signals a shift in momentum to the upside. Additionally, a potential reversal candle has emerged, indicating that if the current momentum persists, it could bode well for bullish investors looking to capitalize on this rally.
Related Readings
Furthermore, the expert points out that the price of Ethereum is currently recovering the 200-week moving average (MA), as well as recent trends in market indicators. The price also broke above a falling trendline in place since late August.
However, sustaining this recovery will be crucial to validate these bullish signals. If Ethereum fails to maintain its upward trajectory, it could lead to a retest of lower support levels or cause price consolidation between $2,100 and $2,300.
Ethereum Price Approaches Key Resistance
Crypto analyst Daan Crypto Trades echoed this sentiment, noting that Ethereum has bounced solidly off support levels. However, he cautions that trading in the $2,100-$2,850 range may remain volatile.
Daan supports in a social media postthat a consolidation above $2,850 would mark a significant bullish development for Ethereum, confirming a breakout of the current downtrend and securing the key $3,000 level, which has not been reached since early August.
Related Readings
Currently, ETH is trading at the top of the descending channel at $2,383, registering gains of nearly 2% over a 24-hour period, according to CoinGecko. data.
This increase is, however, offset by a drop in trading volume for the second-largest cryptocurrency on the market, which amounted to $12 billion over the past 48 hours, a drop of 15% compared to Monday’s trading session.
In addition, in longer time frames, ETH Price is still suffering from the sharp declines seen over the past month, posting losses of 2.6% and almost 7% over the fourteen and thirty day periods, respectively.
Featured image of DALL-E, chart from TradingView.com
