Ethereum price action set to hold ground and let price action not deteriorate any further

Ethereum (ETH) price action came back from the dead at the end of January and has been up roughly 34% since then. Not bad at all, but there is more in the pipeline, as long as bulls can withstand the fade from last week and keep the weekly close above the opening level from around $3,000. Although ETH price is under pressure from a death cross, the weekly close would set the scene for next week to come with bulls being more comfortable going long Ethereum as investors look beyond the past, volatile trading week.

Ethereum bulls in comfortable position for an upbeat trading week to come

With Ethereum price again this week already breaking above the 55-day Simple Moving Average, the bearish cap elements from the 55-day SMA are starting to fade quickly. There is a hole punched in the bearish pressure from the death cross each break above. With the bullish candle this week, the 55-day SMA is showing signs of flattening out already, which would make that if next week is another bullish week with, for example, $3,391 testes or breached, not only bulls will have made 16% of gains, but as well see the 55-day SMA tick up back towards the 200-day SMA. 

Should some favourable tailwinds be added as well, with, for example, the US dollar backing off a bit and weakening further going into next week, together with stock markets back on the front foot and back in the green for 2022, expect these tailwinds to spill over into ETH price action and see the high of February broken to the upside around $3,272. With the Relative Strength Index (RSI) flatlining at the moment, there is no real risk of hitting either the oversold or overbought barrier any time soon. So going into next week, some gains are to be on the table for bulls.

ETH/USD weekly chart

Seeing the nervousness, Ukraine remains to keep investors on edge, and although global markets stop trading during a weekend, cryptocurrencies do not. SO expect cryptocurrencies to be the only ones to react to any geopolitical news coming out of Ukraine during the weekend, and should that be negative, expect some imminent drops in price action with ETH back to $2,695. Depending on the severity of the news and headlines, a further drop to $2,200 could make losses mount between 6% to 25% over the weekend.