Bullish: Signals Suggest Ethereum Could Break Through $3,085.
Along with the market, Ethereum has been on a downward trend. After trying to break through $3,100, the digital asset has suffered another hit, falling below $3,000 for the second time. This, however, does not imply that the slump will continue. In fact, despite the current trend, which would see Ethereum hit another significant resistance mark, evidence indicates the cryptocurrency's approaching upside.
Is Ethereum about to cross the $3,000 mark?
It's no secret that Ethereum's price has primarily fluctuated around $3,000 since its inception. This price level is critical to the asset, which is why bulls are fighting so hard to retain it. And, if the mood continues to improve, the cryptocurrency is expected to be one of the biggest winners from the next surge. Before continuing on its upward trajectory, it will test a key resistance point.
While sale indications continue to outnumber purchase signals for the digital asset, other indicators point to an increasing positive attitude. According to the graph, Ethereum is now trading above the 20-day moving average. This is one of the signs that demonstrates how long-term investors see a digital asset, and the fact that ETH is trading above this level indicates that consumers are willing to pay more for it than they did in the previous few weeks.
For a cryptocurrency like ETH, this might indicate that a reversal is in the pipeline. After settling above its initial support level of $2,780, the next resistance level to test is $3,085 (naturally). Once breached, ETH may very well ride it until the next test at $3,400, which would be a more difficult hurdle to overcome.
Those that own ETH are set to profit.
Despite the current slump, many Ethereum investors are still profiting. It has been shown to be one of the most robust assets, with a solid holding base that has stuck with it through the worst of times, and investors are reaping the benefits. Despite having dropped about 40% of its all-time high value, Ethereum is currently one of the cryptocurrencies with the best return rate for investors.
The majority of on-chain and exchange signals are optimistic. However, with the price solidly below the 50-day moving average, it shows greater long-term sell sentiment, implying that any rally from here would likely be brief.
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