Ethereum (ETH) has been maintaining a consistent upward movement, slowly but surely approaching a significant technical milestone: the 100-day Simple Moving Average (SMA). This isn’t just another line on a chart; it’s the decisive arena for bullish and bearish forces, often determining the direction of the next major trend. As ETH nears this critical resistance point, there’s growing speculation about whether this could trigger a prolonged bullish rally or a stumbling block leading to a market pullback.
The 100-day SMA is a highly respected indicator that mirrors the medium-term trend. Its importance in the crypto market is immense. For Ethereum, a surge above this level could rekindle bullish sentiments, setting the stage for loftier price goals. Conversely, a rejection could potentially trigger further consolidation or a retest of lower support levels.
Despite Ethereum’s rigorous efforts to reach the 100-day SMA, it has grappled with gaining substantial upward momentum due to existing resistance levels. While buyers have expressed interest at crucial support zones to prevent further dips, a lack of sustained volume and conviction has hindered ETH’s breakaway attempts.
The MACD indicator is suggesting a possible momentum shift in Ethereum’s price trajectory. Although the MACD and signal lines have intersected and are nearing the zero line, a definitive bullish crossover is yet to be confirmed. Furthermore, the contracting histogram indicates a shift from bearish to neutral or bullish undertones, awaiting further confirmation for a maintained upward movement.
For Ethereum to maintain a bullish trend, both the MACD line and signal line need to ascend above average, bolstered by enlarging histogram bars in the positive zone. If this happens, it could amplify upward momentum. However, failure to achieve a breakout leaves Ethereum susceptible to consolidation or a downward shift.
A successful breakout above the 100-day SMA could serve as a robust bullish confirmation for Ethereum, indicating a revival in upward momentum and a shift in market sentiment towards the buyers. This would suggest that Ethereum has successfully navigated a key technical hurdle, potentially attracting more investors and traders looking to profit from the uptrend.
If the breakout is sustained with increased volume and robust follow-through, Ethereum could aim for the $2,160 resistance level. A successful push above this level could further increase the chances of price appreciation towards other resistance levels, for instance, $2,858 and $3,360. However, if Ethereum fails to breakout above the key resistance level, it could face a resurgence in selling pressure, which may lead to a new drop towards the $1,523 support zone, a historically crucial demand area where buyers might step in to prevent further losses.
