Ethereum ETH is trading higher Wednesday as the crypto market continues to rebound from the steep drop it saw from December into the new year. The bearish market looks to be over as Ethereum and other popular cryptocurrencies power higher, recovering some gains they have lost over the past few months.
Ethereum was up 5.36% at $3,262.31 at last check.
Ethereum Daily Chart Analysis
- Ethereum was able to see a strong bounce off the higher low trendline and has been powering back higher since. The crypto still trades in what’s called an ascending triangle pattern that shows resistance near the $4,000 level.
- ETH crossed above the 50-day moving average (green) Wednesday but trades below the 200-day moving average (blue), indicating the crypto is now trading in a period of consolidation. The 50-day moving average may hold as an area of support, while the 200-day moving average may act as resistance.
- The Relative Strength Index (RSI) has been climbing for the past couple of weeks and now sits at 62. This shows that over the past few weeks, buyers have been entering into the crypto in growing numbers. The cross above the middle line shows that the crypto is seeing more buying pressure than selling pressure now.
What’s Next For Ethereum?
Ethereum sits in a much more bullish spot long term than it did a few weeks ago. The crypto had previously fallen below the higher lows trendline and appeared ready for more bearish movements, but its recent bounce showed the crypto was still seeing strength.
Bullish traders are looking to see Ethereum continue to trade within the pattern and hold above the higher low trendline before eventually crossing above resistance and seeing a breakout.
Bearish traders are looking to see the price fall back lower and crack below the higher low trendline. Bears also want to see the RSI fall below the middle line, which would indicate selling pressure is greater than buying pressure.
credit to@ benzinga
