By Franklin Smith
Ethereum has been trading on upsurges since the lucrative market actions in early October, attaining record peaks seven times so far. Meanwhile, market participants can expect a sustained Ethereum surge as bullish pressure appears not to fade soon.
Though the Relative Strength Index shows that Ethereum was overbought recently, bulls hold on to critical support as the leading altcoin sees profit-booking before price discovery resumption.
ETH to Kick-start Price Discovery
Ethereum extends its upward stance as some crypto analysts trust the alternative coin will explore the $8,000 area before 2021 end. The narrative seems possible as the Ethereum rally does not appear to halt soon, receiving support from the overall market.
However, market players need to be cautious as the Relative Strength Index corrects from the overbought territory, indicating that bears might pull Ethereum down. ETH has secured support near $4,610, which is beyond the 12 May peak. Bears have tried to breach the level several times in the past few days. However, bulls defended the support.
For now, ETH seems to consolidate. If bulls tighten their position, maintaining Ethereum past the support at $4,610, market players can witness the crypto bouncing of the level. With that, ETH can crack yesterday’s ATH of $4,879 and attempt to challenge the barrier at $5,000.
ETH/USD Daily Price Chart
However, things might go against bulls’ optimism for ETH to cancel the motives to challenge the $5,000 mark. That can see the 2nd-largest coin sliding under the support level at $4,610. Meanwhile, the crypto can secure support near $4,392 and the climbing trend-line, ETH’s dynamic support line.
The climbing trend-line already supported ETH’s price twice, and the asset hits new ATH each time it bounced off the level. If Ethereum plummets under this line, investors can expect $4,275 to offer short-term support for bulls to renew their actions.
If ETH closes past $4,700, it may see a massive surge in the short term. That will witness the alt rising to reclaim $4,850. Further gains from this level will have Ethereum eyeing the next vital obstacle at $5,000.
Ethereum Technical Indicators
- Hourly MACD – ETH/USD’s MACD losses pace towards the bearish territory.
- Hourly RSI – the indicator nears the 50-mark
- Support level – $4,450
- Resistance level – $4,700