Ethereum (ETH) has seen a steady increase in its price, forming a base above the $1,800 support zone. Recently, the cryptocurrency cleared the $1,880 resistance zone, similar to Bitcoin’s climb at $28,800. ETH even rose above $1,900, facing sellers near $1,920, with buyers active near $1,870.
ETH’s price is now rising, and it is trading above $1,880 and the 100-hourly Simple Moving Average, forming a major bullish trend line with support near $1,885 on the hourly chart of ETH/USD (data feed via Kraken). As the trendline suggests, the cryptocurrency’s price could surge toward $2,000 or $2,050 if it manages to clear the $1,920 resistance zone.
The hourly MACD for ETH/USD also indicates that the MACD is gaining momentum in the bullish zone, while the hourly RSI is above the 50 level. The immediate resistance level is near the $1,905 price level, which is close to the 76.4% Fib retracement level of the recent decline from the $1,917 high to the $1,867 low.
The next major resistance seems to be forming near $1,920, and a close above this level could send Ethereum toward the $1,940 resistance. If further gains are seen, the price could rise towards the $2,000 resistance. In this case, the price may even rise towards the $2,120 resistance level.
However, if Ethereum fails to clear the $1,920 resistance, it could start a downside correction. Initial support on the downside can be found near the $1,885 level and the trendline. The next major support is near the $1,880 zone or the 100 hourly SMA, below which ETH’s price might drop towards the $1,840 support level. Any further losses may take the price towards the $1,805 level soon.
The trend for Ethereum appears to be largely bullish, albeit with a few challenges along the way. There has been a significant increase in interest in Ethereum, with investors pouring millions of dollars into the cryptocurrency, due to its widely accessible smart contract technology and the explosion of decentralized finance (DeFi) platforms. The DeFi space aims to build a more decentralized financial system that does not rely on traditional banking and financial intermediaries.
This has led to a significant increase in demand for Ethereum, as the cryptocurrency is the go-to platform for DeFi developers and enthusiasts. According to data from Defipulse, the total value of ETH locked in DeFi has increased by over 600% since January 2020, reaching nearly $15 billion in mid-February 2021.
Overall, with Ethereum’s rise in popularity, we can expect the cryptocurrency to continue its upward momentum in the near future, albeit with some periodic dips. However, as always, investors should do their own research and stay up-to-date on market trends to make informed decisions about buying and selling cryptocurrencies.
