The recent upgrade kept Ethereum on its toes as cryptocurrency markets made much progress after the rebound adding over $400B leaps for the week. The significant increase in trade volumes indicated a positive trend. Markets have finally managed to reclaim their June highs. ETH might undergo a minor retracement as investors await a break of $3,200 to complete a massive bullish pattern. Today’s rally is much weaker in scope compared to the prior day’s bounce as ETH/USD technical picture stays overstretched. Resistance lies at the respective horizontal levels ahead of price, which today is at $3,200 followed by $3,500. At the time of this post, the no.2 crypto was hovering at $3,150. With sentiment fragile, ETH/USD eases from the post-London upgrade and could negatively affect prices if sellers enter abruptly. Despite an impressive period of growth during the past two weeks, on-chain analysts are speculating Ethereum’s price action has been influenced by community excitement without corresponding network activity. The London Hard Fork served as a warm-up for ‘Serenity,’ or ETH 2.0, with a twelve-day constant rise signaling that the upgrade was well-received by the Ethereum community.
Key Levels
Resistance Levels: $3,700, $3,500, $3,200
Support Levels: $3,000, $2,800, $2,500
ETH/USD Daily ChartAlthough Ethereum normally follows Bitcoin’s lead, it has recently risen as investors seek to profit from the predicted price barrier of $3,200 before another upswing. However, unless the jump in ETH/USD is reversed, the pair could soon advance to $3,500, where it may encounter some resistance. On a technical level, the action is still quite bullish but RSI tops in a major supply area is a warning sign as buying has lost its impetus.
The ETH/USD pair has gained above 200% since hitting a low of $1,720 on July 20 and is currently trading in the $3,100-3,200 range at the time of writing this analysis. As price hits a speed bump on investors’ fear about non-corresponding network activity, the rebound has come to a halt right at the peak at $3,200. The break below $3,000 could prompt the bulls to bail out. $2,800 would be the next support as the no.2 crypto goes into a correction.
ETH/USD 4-Hour ChartOn the lower time frame, the ETH/USD is bullish against the bears on Tuesday. During the day’s activity, however, the cryptocurrency pair remained below the $3,200 level. The rate may continue to rise in an ascending channel pattern shortly. The resistance at $3,500 will be a viable target for buyers. Within this session, nevertheless, the ETH rate may continue to consolidate below the $3,200 mark.
If ETH/USD could not find enough buyers to overcome the $3,200 level, the spotlight could shift again towards the moving average (MA 50). The $3,000 round number, above where MA 50 is currently hovering, could challenge any bearish attempts towards the $2,800 area. Further a break below the MA 50, on the other hand, would reinforce the case for a downtrending market, triggering a new bearish wave towards $2,700-2,500.
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