• Ethereum price shows bullish resurgence after flipping a crucial resistance barrier.
  • Transaction data shows that ETH bulls will face massive hurdles up to $3,814.
  • A daily candlestick close below $2,820 will invalidate the bullish thesis.

Ethereum price is showing mixed signals as it tries to overcome a massive resistance area. Clearing it will open the path for retesting all-time highs but failing to do so might result in further losses. 

Ethereum price ignores sell signs

Ethereum price has been stuck under a declining trend line since December 30, 2021, and below the 50-day Simple Moving Average (SMA) since December 09, 2021. A combination of these hurdles prevented ETH from moving higher.

However, on March 17, buyers pushed Ethereum price over the 50-day SMA and five days later, the declining trend line. Yet at the same time – as a result of this uptrend – the Momentum Reversal Indicator flashed a red ‘one’ sell sign, forecasting one-to-four red candlesticks.

Ignoring this sell-sign, Ethereum price has opened today on a bullish note. Investors need to understand that this uptrend is highly unlikely to sustain without Bitcoin’s help. Additionally, if BTC retraces, ETH will follow without hesitation.

In a case where Ethereum price manages to move past the $3,500 barrier, there is a good chance this move might add to the larger run-up that eyes a retest of $4,000 and subsequently higher levels.

ETH/USDT 1-day chart

ETH/USDT 1-day chart

Supporting the unsustainability of the recent upswing for Ethereum price is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This index shows that ETH will face massive resistance from underwater investors, ranging from $3,200 to $3,800. Here, roughly 12 million addresses that purchased 14 million ETH are “Out of the Money.” 

An up move into this zone, therefore, will likely be met with selling pressure from investors trying to break even.

That said, there is a chance for ETH to move up to $3,200 from its current position before facing these significant headwinds.

ETH GIOM

ETH GIOM

The recent uptick in the number of daily active addresses from 566,000 to 650,000 over the past month indicates that investors are interacting with the Ethereum blockchain. This 15% rise in addresses indicates that market participants are interested in ETH at the current price levels.

ETH DAA

ETH DAA 

Although bulls are trying to break through the hurdles, Ethereum price is still highly correlated with BTC. So a daily candlestick close below $2,820 will invalidate the bullish thesis.

This development will open the path for a retest of $2,541 support level, where buyers might attempt another uptrend.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves.

More Bitcoin News

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic (ETC) saw the headwinds that triggered the massive sell-off of 2022 fade a bit to the background in the first weeks of 2023. That resulted in bulls returning to life after a hibernation of almost five consecutive straight months.

More Ethereum Classic News

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple, the cross-border remittance giant is likely to win its legal battle against US financial regulator, the Securities and Exchange Commission (SEC) according to crypto proponent John Deaton.

More Ripple News

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

Shiba Inu holders who acquired SHIB more than 11 months ago are holding onto their tokens. These holders have refrained from selling their SHIB holdings since December 2021.

More Shiba Inu News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP