Ethereum Price Poised to Break $2,000 Resistance Level
It appears that the price of Ethereum (ETH) is on the verge of breaking out and closing above the psychological resistance level of $2,000. This comes as interest in the largest smart contracts token continues to increase, especially with Bitcoin’s recent recovery.
Double-Bottom Pattern Formation
Ethereum has completed the formation of a double-bottom pattern, which occurred after bouncing back from support at $1,530. The next step is for the price to validate this pattern by surpassing the neckline resistance at $1,745.
The presence of two golden cross patterns on the daily chart is a positive sign for the continuation of the uptrend. These patterns were formed when the 21-day Exponential Moving Average (EMA) crossed above both the 100-day EMA and the 200-day EMA.
Predicted Breakout and Trading Volume Surge
If traders maintain their buy orders, it is likely that Ethereum will experience a breakout of around 12.25% to reach $1,958. This breakout could also result in a significant surge in trading volume as more traders seek exposure to Ether above the neckline resistance level.
Strength Indicators
The Relative Strength Index (RSI) currently stands at 75, indicating that Ethereum’s price is in a position to sustain its uptrend. However, caution is advised due to potential oversold conditions that may prompt traders to sell ETH to secure profits or protect their capital.
The money flow index (MFI), which tracks the inflow and outflow of money, shows that bulls currently have an advantage. With an MFI strength of 76, there is still room for growth.
Support and Resistance Levels
In order to secure the uptrend and confirm a bullish outlook towards $2,000, Ethereum needs to break above the $1,700 level. Trading above $2,000 would be a significant milestone for Ethereum bulls and could potentially trigger a bull run.
If Ethereum fails to maintain support at $1,670 and $1,630, it could experience another sell-off down to $1,550. However, as long as Ethereum remains above all its moving averages, the path of least resistance will continue to be upwards.
Ethereum DeFi TVL Reaches $21 Billion
The transition from a proof-of-work (PoW) protocol to a proof-of-stake (PoS) consensus mechanism has opened up new opportunities for decentralized finance (DeFi) on the Ethereum network. Liquid staking tokens like Lido and Rocket Pool have contributed to the growth of the DeFi ecosystem.
Despite the prolonged crypto bear market, investors have maintained their exposure to DeFi products within the Ethereum ecosystem. According to Defi Llama data, there is currently a total value locked (TVL) of $21.27 billion in Ethereum’s DeFi space.
In the past 24 hours alone, there has been an inflow of $45 million into the ecosystem, with $1.49 million recorded as revenue.
Hot Take: John’s Insights on Crypto Market Trends
John is a highly respected crypto expert known for his accurate price predictions and in-depth analysis of the digital asset market. As CoinGape Media’s Price Prediction Editor for Market Content, he provides valuable insights on price trends and market forecasts.
With his extensive experience in the crypto sphere, John specializes in understanding on-chain data analytics, NFTs, DeFi, CeFi, and the dynamic metaverse landscape. Through his reporting, he keeps his audience informed and equipped to navigate the ever-changing crypto market.
Disclaimer: The author’s opinions are presented in this content and should be considered alongside market research before making any cryptocurrency investments. The author and the publication hold no responsibility for personal financial losses.
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