- Ethereum price brushes shoulder with $2,200 as bulls look forward to $2,800.
- The 50 SMA resistance must come down for Ether to validate the recovery.
Ethereum price has in the last few days battled the resistance at $2,000. This crucial level came into the picture after Ether plunged to $1,800 early last week. Sentiment seems to be shifting with market watcher again seemingly clamouring to buy cryptocurrency and Ether is a major beneficiary.
With support at this level holding firmly, buyers were attracted to the market. On Monday, an increase in buy orders lifted ETH above $2,000, setting the precedence for the ongoing uptrend.
How formidable is Ethereum price V-shaped recovery?
The 12-hour chart shows the formation of a V-shaped pattern. This a highly bullish pattern that occurs after an asset significantly drops in price. Often support is secured amid oversold conditions. Hence, a sharp and quick recovery carries on as the bullish momentum gains traction.
For instance, Ethereum price on crypto trading platforms is at $2,213 amid the V-shaped recovery. With the former hurdle at $2,000 in the rearview, bulls are gazing at lifting the price to $2,800. However, the 50 Simple Moving Average (SMA) on the four-hour chart must be broken to pave the way for an imminent breakout.
ETH/USD four-hour chart
Meanwhile, the uptrend has been validated by the Moving Average Convergence Divergence (MACD). This is a trend-following tool that calculates the momentum of an asset. Bullish and bearish signals emanate from the MACD.
Note that a bullish signal comes into the picture when the MACD crosses above the zero line and into the positive region. Before this, the MACD line (blue) strokes above the signal line, implying that the path with the least resistance is upward, and investors should consider buying into Ether.
Ethereum is in the bulls’ hands, and the overall technical picture will likely remain unchanged in the near term. A 12-hour close above $2,000, if not the 50 SMA, will help validate the uptrend. With stability returning to the market, Ethereum will most likely close the gap toward $2,800.
Ethereum price bullish outlook has also been validated by improving network growth, as shown in the graph below. According to Santiment’s on-chain model, the number of new addresses bottomed around 72,200 tracked on a three-month trailing average.
Ethereum Price Network Growth Has A Bullish Signal
At the moment, the number of newly-created addresses stands at 130,000 and is likely to hit a higher level this week. As long as the uptrend remains intact, Ethereum price will keep closing the gap to $2,800 and perhaps brush shoulders with $3,000.
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John Isige
