Ethereum (ETH) recently discovered support around $2,867, igniting the possibility of an uptrend. Does this indicate the end of the correction? ETH has gone through a noticeable correction phase in the past few weeks. However, the recent rebound from crucial support levels suggests that this trend may be reversing.
Support Level for Ethereum
Ethereum’s price recently rebounded from the 0.382 Fibonacci support level at approximately $2,867. After the initial jump, it returned to this support level. Nonetheless, Ethereum has shown a consistent upward trend during the recovery period in the last few days. It is currently facing significant resistance at the 50-day exponential moving average (EMA) around $3,277. Notable Fibonacci resistance levels range from approximately $3,320 to $3,650.
It is worth noting that the correction phase could potentially conclude by surpassing the golden ratio resistance at around $3,650. Breaking the parallel descending channel could indicate a reversal to an upward trend for Ethereum. In such a scenario, Ethereum could potentially aim for or surpass its previous high of $4,095. Moreover, the daily chart EMAs continue to demonstrate the golden ratio.
ETH Current Data
Furthermore, the bullish crossover of the moving average convergence/divergence (MACD) lines and the recent upward movement of the MACD histogram could further support the bullish outlook. However, the relative strength index (RSI) remains neutral, providing no indication of upward or downward momentum. Ethereum’s 4-hour chart recently showed a death cross, further strengthening the short-term downward trend.
Nevertheless, if Ethereum maintains its upward momentum and surpasses the 0.382 Fibonacci resistance level around $3,320, it could complete the golden ratio formation of the EMAs. This development could signal a short-term reversal to an upward trend. Additionally, current indicators point towards a bullish outlook. The MACD histogram is on an upward trajectory alongside the bullish MACD lines, while the RSI remains in the neutral zone.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.
