Ethereum price has overcome major supply resistances on a sustained rally upwards, revealing that bulls are in control. On-chain metrics show that ETH is currently sitting on strong support as bulls eye $2,500.
Ethereum Price Overcome Major Resistances
ETH seems to be making a remarkable comeback after the $1761 low registered on July 20. The re-emergence of the bulls has rallied Ethereum price approximately 18% slicing through the 50-day Simple Moving Average (SMA) at $1,892, the $2,013 resistance level, the 100-day SMA ($2,025) and the 200-day SMA ($2,045).
At the time of writing, Ethereum price is trading at $2,069 above $2,047 the July 13 swing high. This sustained upswing seems to have bolstered ETH bulls who are focused to extending the bullish rally beyond the $2,169 resistance level while eyeing $2,500. If this happens, it will be a 21% rise from the current price.
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Ethereum Price (ETH/USD) Four-Hour Chart
From a more technical outlook, the Moving Average Convergence Divergence (MACD) indicator adds credence to this bullish narrative. This started when the 12-day Exponential Moving Average (EMA) crossed above the 23-day EMA sending a sell crypto signal. Note that when the MACD line (blue) crossed the zero line into the positive region accentuates the sustained upward ETH swing.
Moreover, the movement of the Relative Strength Index (RSI) close to the oversold region indicates that the bulls are strong and are in control of the market.
ETH Faces Weak Resistance Upwards
On-chain metrics from the In/Out of the Money Around Price (IOMAP) Model by IntoTheBlock reveals that Ether is sitting on relatively strong support. From this indicator it can be seen that the $2,105 to $2,485 investor cluster where 3.39 million addresses are holding approximately $10.4 million ETH is the only significant barrier that might Ethereum’s upward rally.
Therefore, investors can expect smart contract giant token’s to slice through this immediate resistance to get to levels around $2,500 before the $2,485 and $4,078 seller cluster exerts overhead pressure in attempt to break-even.
A Look On the Other Side
Note that a daily closure below the 200-day SMA at $2,045 could invalidate the Ethereum price bullish thesis. This would see a correction towards the $2,000 psychological level and open a possibility of a 14% to retest the July 20 low at $1,711.
This bearish possibility is accentuated by the IOMAP model indicator which shows that the immediate support at the $1,767 and $1,941 range is relatively weak. At his range, 14 million ETH are held by only 2.4 million addresses. Therefore, bulls must defend the $1,976 level support level to avoid any downswing.
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Nancy Lubale
