Chart by TradingView
Key Support level: $4,354
Key Resistance level: $5,075
Ethereum bulls took the price to a new all-time high today, and ETH is firmly placed above $4,500.
This week ETH entered into deflationary economics with more ETH burned than generated. This puts pressure on price, which has been accommodated by appreciating. It is no surprise that in the past two days, ETH has been setting new all-time highs. The key resistance to watch for is found at $5,075, while support is at $4,354 or around the old ATH from May that has now turned into support.
Trading Volume: The volume yesterday was significant and took ETH above $4,500. If buyers continue to dominate the market, ETH might rise in price until it meets the next key resistance.
RSI: The RSI has made higher lows on the daily timeframe and, at the time of this post, appears still hesitant to break above the 70 points level. A break above would send a clear message that ETH is very bullish, with buyers dominating the price action.
MACD: The histogram on the daily timeframe has turned back on the uptrend with a higher bar in the last two days. This is a welcomed reversal as in our last ETH analysis we warned that bulls had to step up to avoid a bearish cross. They now succeeded at that. The question is how long they can sustain this uptrend.
The bias on Ethereum is bullish. When the cryptocurrency creates a new all-time high on a daily basis, this shows that ETH is in price discovery and likely will have to continue up quite a bit before bears return to ruin the party. It appears that $5K is the challenge to overcome next.
The momentum may increase further if the volume goes up. This can lead to significant volatility and price swings. The first key resistance at $5,075 may provide some temporary halt in the bullish trend, but it seems unlikely it will reverse Ethereum’s search for a new top during this bull cycle.
