Ethereum Price Jump Highlights Strong Demand at $2,400
Ethereum, the second-largest cryptocurrency by market cap, is making significant strides in the digital asset world. Recently, it reclaimed a market cap of over $300 billion, experiencing a 2.92% increase in just 24 hours. As of now, Ethereum is trading at $2,521, marking a 4.61% rise overnight, creating a bullish engulfing candle.
In simple terms, a bullish engulfing candle is a large green candlestick that entirely covers the previous red candlestick, indicating a potential upward trend. This pattern suggests that buyers are regaining control, pushing prices higher.
In the daily chart, Ethereum's price is navigating a falling-channel pattern, yet it finds robust support at the $2,400 level. This zone is crucial as it may prevent further declines. Despite a 3.45% drop last Sunday, Ethereum's price is showing signs of a bullish reversal.
A double-bottom pattern is emerging at this support level, which is a bullish sign indicating the possibility of a trend reversal. Additionally, the Relative Strength Index (RSI) line shows a bullish divergence, meaning that while prices might be falling, the RSI suggests strength, hinting at a potential reversal.
Zooming into the 4-hour chart, there's a visible consolidation range from the bottom support at $2,393 to a ceiling of $2,581. This range acts as a buffer zone, with critical price movements expected upon its breakout. The 50-EMA (Exponential Moving Average) acts as a dynamic resistance, slightly hindering bullish progress by dropping 0.85%. However, the evident bullish divergence within this range raises the likelihood of a breakout rally. Price action traders, those who rely on technical analysis rather than fundamental data, may find this breakout an attractive entry point, with target levels set at $2,700 and $3,173 in the short term.
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