- Ethereum price jumped above the monthly pivot overnight and performed a technical entry.
- ETH price bounces off monthly pivot and is set to rally towards $3,200.
- Although Nasdaq is dragging, dollar weakness is helping cryptocurrencies across the board with gains.
Ethereum (ETH) price is on the cusp of rallying 17% as bulls close above the monthly pivot on Tuesday, and ETH price is currently testing support for a rebound towards $3,200. Although the Nasdaq is causing headwinds with FAANG-stock Netflix on the backfoot, dropping 25%, other tailwinds are emerging and underpinning the price action's bullish hand. Expect to see a staged rally with the first target at $3,200 and the ultimate level at $3,500, where the 200-day Simple Moving Average (SMA) has been flatlining for over a month now.
ETH price death cross nears its end
Ethereum bulls are on track to undo the famous death cross where the 55-day SMA is trading below the 200-day SMA. Although there is still around a $500 gap to cross, the 55-day SMA’s uptrend cannot be ignored. The Relative Strength Index (RSI) is back trading at around 50 and is showing an uptick in favour of bulls outpacing bears in trading volume.
ETH price is thus set to pop above $3,200 after finding support on the daily pivot near $3,068, helped by some dollar weakness this morning. With the Greenback backing off a bit, ETH and other cryptocurrencies have the chance to book some gains and, in the meantime, recover some ground to the upside, turning technical levels back into support instead of resistance. This week's ultimate target to the upside is $3,500, which is within reach if the dollar index keeps fading throughout the week, opening a window of opportunity for a 17% rally.
ETH/USD daily chart
Risk to the downside could come from fresh sanctions announced by the US, potentially from blacklisting countries that are still trading and dealing with Russia. That would intensify the explosive situation on the world stage and could put investors on edge, making them flee to safer assets. Expect a break below $3,000 and the 55-day SMA towards $2,695.80, totalling a 13% loss.
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