Ethereum (ETH) price has been whipsaw in today’s session swing in between the red and green zone. ETH has posted strong gains to go from $2,159.0 to the highs of February at $3,824.75. The price has flipped a crucial barrier suggesting investors are accumulating near the lower level. Going forward, the expectation of increased buying pressure is riping off.
- Ethereum (ETH) price accumulates gains on Friday.
- ETH consolidates in the rising wedge pattern.
- Momentum oscillators support the bullish outlook in the altcoin.
According to Investment Banking Morgan Stanley, the Ethereum market could be an even bigger market than Bitcoin going forward. Ethereum except sharing similarity to the largest cryptocurrency Bitcoin as it is possessing a “larger collection of activities”. As per the data from Defi Llama, currently Ether, the native coin of the Ethereum Blockchain accounts for 59.35% of Defi activity with more than $123 billion locked in Ethereum-based protocols.
Morgon Stanley analyst also highlighted that Ethereum is considered a hedge to equities. ETH has nearly twice correlated to the S&P 500 at, 0.26 Vs 0.14 for bitcoin.
Further 97% of the NFT volume of nearly $19.5 billion is on the Ethereum blockchain.
Ethereum face upside risk on the daily chart
Eth has been trading in the ‘rising wedge pattern, which is a bearish reversal pattern. ETH has gained almost 52% from the lows of $2,159.0. Investors tested the lower trend line of the pattern many times but remained short of reaching the upper trendline. The reading suggests bulls lack conviction and confidence to continue with the upside momentum.
Furthermore, the price sliced the 50-day Simple Moving Average (SMA) at $3,211.41. If the selling pressure is maintained then the probability of meeting the lows of near $2,800 can not be ruled out.
Now, a decisive break of the pattern would see the meeting of a $2,500 horizontal support line.
On the other hand, after buyers are able to pull out 50-day SMA it will make the path easier to reach out $3,500.
RSI: The Relative Strength Index (RSI) trades near 50, the momentum indicator turn toward the moving average. Any downtick could bring fresh selling in the pair.
MACD: The Moving Average Convergence Divergence (MACD) holds near the midline with a bullish bias.
Mixed signals from the technical indicators suggest ETH needs conviction in a particular direction to trade further.