Ethereum is the second cryptocurrency after Bitcoin, in terms of many factors, although it has been giving signs that it might turn into the leader of the crypto market. It did take the lead in the first two weeks of May, when it continued to surge higher, together with some other cryptocurrencies, while most of the market, including Bitcoin, was either in stagnation or retreating lower. China is trying to fight cryptocurrencies, but they are mainly focused on Bitcoin, so this is another advantage for Ethereum.

Now, it seems like Ethereum is still trying to take the led in the cryptocurrency market, gaining nearly 30% during the bounce this week, while Bitcoin has only gained around 20%. The bullish reversing chart pattern was quite clear on the daily time-frame, after the ETH/USD found support at the previous support area, around $1,720-30.

The 200 SMA (purple) provided solid support once again, and several days ago, the price also formed a doji candlestick, which is a bullish reversing sign after the decline. The reversal came, and Ethereum bounced higher this week.

Ethereum Live Chart

Three Obstacles to Take Out for the ETH/USD

But, the bounce stopped right at the 20 SMA (gray) on the daily chart. This moving average has acted as weak support before, but it is providing resistance right now. This is not a good sign for buyers, but on the other hand, the pullback down seems pretty weak too, or it has probably ended already.

The next resistance level comes at $$2,370, where the 100 SMA stands – this was the ultimate support for a month after the crash. It is followed by the 50 SMA (yellow) higher, which has already provided resistance before and comes at $2,550. If Ethereum buyers break above all three moving averages, then the trend will be bullish again. But, Ethereum will have to take out the first obstacle, the 20 SMA, to begin with, so let’s see how things evolve.