Mon, 04 Apr 2022 19:00:05 +0000
Ethereum continues on its upward journey although not without its fair share of bumps along the way. Nevertheless, the digital asset still remains one of the most promising in the crypto space and has demonstrated that with its recent recovery. But even after successfully landing above $3,000, the cryptocurrency still remains a long way from its all-time high of almost $5,000. However, the long-term indicators paint a favorable picture for Ethereum.
For the longest time following the December crash, the price of Ethereum had traded below important moving averages like the 50 and 100-day moving averages. Mostly this was a direct result of the continuous downtrend that rocked not only the digital asset but the entire crypto market. However, with the recent recoveries, Ethereum has been able to make significant strides price-wise and now sits above these important moving averages.
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Ethereum had made it above the 20 and 50-day moving averages first but had found it hard to register above the 100-day counterpart. The former two had seen indicators turn bullish for the digital asset in the short-term, However, since it had continued to trade below the 100-day moving average, prospects for the long term had remained bleak.
ETH trading at $3,489 | Source: ETHUSD on TradingView.com
Regardless of this, ETH had maintained its recovery trend, finally hitting as high as $3,000. This had adequately solidified its position above 100 and 200-day moving averages. Pushing it once again into bull territory for the long term.
On the year-to-date (YTD) chart, ETH also continues to perform well, sitting well above its YTD moving average.
Like with any cryptocurrency, there are always going to be obstacles in a recovery trend. For Ethereum, these obstacles lie at the resistance that is being posed by bears above the $3,500 level. This level has been proving hard to beat for Ethereum given that the digital asset had taken a bit of a tumble after trying to cement its position above this point.
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Even though indicators have turned in favor of buyers currently, these resistance points still remain difficult to beat. A significant push in momentum is needed to get the digital asset over the $3,542 resistance point. After this though, another ride up will see more pushback from bears at the $3,643 level. Above which lies the coveted $3,807, last in line before $4,000.
In the short term, Ethereum continues to do well as evidenced by its current position in the market. The digital asset is trading at $3,459 at the time of this writing and remains the second-largest cryptocurrency by market cap.
Featured image from Coingape, chart from TradingView.com