Ethereum Hovers Above $1,600, What’s The Next Move?
The general crypto market has increased in market cap in 24 hours, up by 2.89%. Ethereum (ETH), the second-largest crypto project, is also trading in the green in the same time period.
Despite being so early in 2023, ETH has recorded significant price gains in the crypto market. Ethereum is still off its all-time high value, but its price shows resilience with the current upsurge.
What Is Driving Ethereum’s Rally?
The recent gains recorded could be attributed to the notable projects hosted on the Ethereum network. The Ethereum blockchain remains the most popular blockchain for NFTs. The blockchain is also the pioneer of smart contracts, which is now the widely adopted technology in crypto. These smart contracts enable crypto users to interact seamlessly and securely on the blockchain.
Ethereum Name Service (ENS) is one of the innovations on the Ethereum network. ENS is a distributed naming system that helps to shorten a cryptocurrency address by assigning readable names to eliminate confusion.
Also, ETH is the second-largest cryptocurrency project by market cap and the first altcoin. Its innovative proof-of-stake system is more energy efficient and attracts increased participation from the crypto community. The network is renowned as a developer’s hub with numerous Web3 and Metaverse projects.
What Next For Ethereum As It Crosses $1,600?
ETH recovered from the general market pullback yesterday, trading at $1,605, an increase of 3.81%. The candlesticks on the chart show that ETH has been in an uptrend in the past few days. However, it is currently in a sideways trend and is poised to resume its ascent on the price charts. ETH’s price correlates to bitcoin’s price, just like most cryptocurrencies, increasing whenever BTC is bullish.
ETH is now trading above its 50-day and 200-day Simple Moving Average (SMA). This is a bullish signal for the asset, so there could be an increase in ETH’s price in the coming days.
The support levels are $1,452.32, $1,495.32, and $1,560.14, and its resistance levels are $1,667.95, $1,710.67, and $1,775.77. Ethereum has sufficient momentum in the market today and will likely surpass the closest resistance level of $1,667.95.
Related Reading: CryptoQuant’s Bitcoin PnL Index Forms Bullish Crossover
The Relative Strength Index (RSI) is currently at 67.12, close to the overbought region of 70. However, it shows signs of a possible retracement, implying that a reversal in the coming days is still possible. The Moving Average Convergence/Divergence (MACD) is above its signal line but showing convergence. It also reflects the possibility of a downtrend occurring in the short term.
Featured image from Pixabay and chart from TradingView.com