Ethereum (ETH) recently discovered support at $2,867, which could potentially mark the end of its correction phase. The bounce from this key support level suggests a reversal in the trend.
Support Level for Ethereum
The price of Ethereum has recently rebounded from the 0.382 Fibonacci support level at approximately $2,867. Although it initially returned to this support level, Ethereum has been steadily climbing during its recovery period over the past few days. However, it is now facing significant resistance at the 50-day exponential moving average (EMA) around $3,277. Notable Fibonacci resistance levels are estimated to be between $3,320 and $3,650.
It is worth noting that surpassing the golden ratio resistance at $3,650 could potentially signal the end of the correction phase. Breaking out of the parallel descending channel would indicate a shift to an upward trend for Ethereum. In this scenario, Ethereum could potentially aim for or even exceed its previous high of $4,095. Furthermore, the daily chart EMAs still adhere to the golden ratio.
ETH Current Data
In addition, the bullish crossover of the moving average convergence/divergence (MACD) lines and the recent upward movement of the MACD histogram support the bullish outlook. However, the relative strength index (RSI) remains neutral, offering no clear indication of upward or downward momentum. On Ethereum’s 4-hour chart, a death cross has recently appeared, strengthening the short-term downward trend.
Nevertheless, if Ethereum maintains its upward momentum and surpasses the 0.382 Fibonacci resistance level at $3,320, it could complete the formation of the EMAs’ golden ratio. This development would suggest a short-term reversal to an upward trend. Furthermore, current indicators point towards a bullish outlook, with the MACD histogram trending upward alongside the bullish MACD lines, while the RSI remains in the neutral zone.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks, and should conduct their own research.
