Ethereum is the second-largest cryptocurrency globally, and it looks very bullish in the long term. The recent rally has pushed its price past many critical levels that have solidified the upward movement. Ethereum is also moving higher on the ETH/BTC chart, which shows it is outpacing the largest cryptocurrency on the market. At present, ETH is trading near $3,400 after a slight correction.
Ethereum’s price action
Ethereum’s daily chart shows that whenever the price moves below the 20 days EMA, there is often a significant correction. The same happened in November 2021, all the way to March 2022. However, with the recent rally, the price has moved past the 20-day EMA, which was one of the most important levels to clear for this rally to happen. We have also moved past the 200-day and 50-day EMA at the same time.
Now the price seems to be struggling a bit near the $3,500 range as we have the 200-day Moving average. Ethereum has already cleared the 20-day and 50-day MA, so this could be the final major hurdle below $4,000. There has been a slight rejection from $3,580, the main reason for which could be the Bitcoin pull back at the same time. So, we will have to wait and see how the price reacts to that level when Bitcoin pumps as well.
But if we draw a Fib retracement from the top of the ETH chart to the bottom of this correction, it’s important to note that the 50% Fib is also at $3,519. This is a resistance that ETH will need to clear. And on further upside, the next resistance will be near the 61.8% level at $3,842 and then the 78.6% level near $4,300.
is is time to go all-in on ETH?
I firmly believe that in the long term, Ethereum is going to keep outperforming Bitcoin by quite a huge margin. So, if you were planning to invest in Ethereum because of that, then yes, it’s a good time to get in. However, in the short term, it’s difficult to predict if the rally is going to continue or not. You might also consider other altcoins that have huge upside potential in the future, like Ada, Luna, Dot, Uni, and Link. Though, it should be only if the risk to reward ratio makes sense to you.
Do you think with Ethereum clearing essential levels, the price action looks bullish? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: ₹2.2 crores worth of crypto payments in drug trafficking uncovered by NCB & CBIC.
