Chart by TradingView
After wicking down towards $2300, ETH turned short-term bullish as the uncertainty around the Russia – Ukraine conflict faded. Both crypto and global markets soared over the past few days.
As of writing these lines, ETH is testing the key resistance level at $2800.
Key Support levels: $2500, $2300.
Key Resistance levels: $2800, $3000.
ETH will look forward to breaking above the $2800 key level and turning it into support in the near term. If successful, ETH will likely head even higher: the next levels to watch are $3,000 and $3,400.
However, we need to keep in mind that today is Sunday (weekend), so the volume remains low, despite price moving higher. This warrants caution, and better to wait for the new week to start.
Trading Volume: After Thursday’s impressive reversal, this weekend is so far seeing low amounts of volume, despite the most recent price increase. An increase in price on declining volume is usually a bearish signal of a declining trend.
RSI: The daily RSI is close to moving above 50 points. Moreover, the RSI has made a higher low during last Thursday’s reversal day. These are bullish signals.
MACD: The daily MACD appears hours away from a bullish crossover. If confirmed, this would be an additional signal that ETH may continue its rally.
The current bias for ETH is slightly bullish unless ETH will face rejection at $2800 shortly.
ETH is turning short-term bullish, proving high demand below $2800. The only worrying sign is the lack of volume over the weekend, which may doubt this price increase. Nevertheless, ETH seems well-positioned to at least test the $3,000 level in the near future, in case $2800 support would get built.
