The price of Ethereum (ETH) has made a significant move as it has broken above the 21-day moving average, signaling a potential uptrend for the popular cryptocurrency. According to a price analysis by Coinidol.com, Ethereum is currently trading above the $2,200 support level but below the 21-day moving average.
Despite the recent breakout, the long-term price analysis remains bearish as the 21-day SMA continues to act as a resistance level for Ethereum. The altcoin is facing initial resistance at $2,850, and if it fails to break above this level, it could be trapped between the moving average lines. On the downside, selling pressure could increase if the bears breach the 21-day moving average, potentially leading to a drop back to the previous low above $2,200.
Technical indicators suggest that Ethereum is correcting upwards after breaking above the 21-day SMA, with bullish momentum extending to the 50-day SMA. Once the price breaks above both moving averages, Ether is expected to resume its uptrend. However, the presence of doji candlesticks indicates a slowdown in price movement and potential consolidation.
Key resistance levels for Ethereum are at $4,000 and $4,500, while key support levels are at $3,500 and $3,000. Traders and investors are advised to conduct their research before making any investment decisions, as the analysis and forecast provided are personal opinions and not a recommendation to buy or sell cryptocurrency.
