- Ethereum had its price slicing 50-day Simple Moving Average at $3,196, painting a bullish picture.
- The alt contemplates a 14% surge despite encountering a challenging resistance zone near $3,413.
- Violating the support barrier at $3,081 might catalyze a 9% drop towards $2,792.
Ethereum (ETH) flipped a critical barrier, indicating a surge in buying strength. The developments emerged after Ether saw substantial gains over the last week. For now, market players can expect further gains from this ‘smart’ contract crypto.
Ethereum Price Action
Ethereum price surged 41% in about two weeks, from 27 January. The upside move pushed Ether to create a daily candle close beyond 50-day SMA around $3,196. With that, the leading altcoin jumped into the bullish waves, suggesting possible uptrends in the up-and-coming sessions.
A possible surge in buying strength might push ETH to retest the obstacle around $3,413. If buyers flip this hurdle into a foothold, ETH will form a base, targeting $3,631, the level where 100-day and 200-day Simple Moving Averages can crossover.
Therefore, market players may expect $3,631 to cap further gains from Ethereum. That would mean a 13% upswing from the $3,196 value area. Moreover, the daily price chart shows the asset conquered all challenges in its move to $3,200. Bulls appear confident to prevent any price fall. Investors eye $3,600 as the token successfully climbed past bearish sloping trend-line and 50 SMA.
Meanwhile, Ethereum has dropped over 45% since its 10 November all-time peak. Indeed, the crypto spectrum endured a challenging phase at the dominant coin, BTC, losing over 50% since its November high. However, this month witnessed reversals by most assets.
Though the plausible outlook, the narrative depends on buying pressure resurgence. Failure to that might lead to corrections towards the closest support zones at $3,081, then $2,792. The leading altcoin might consolidate at these zones and try an upward move.
Nevertheless, violating the barrier around $2,792 may catalyze a possible decline towards the foothold at $2,324. A daily candle close under this footing will print a lower low, ruining the bullish case for ETH price.
Stay tuned for more crypto updates.