Ethereum Looks Increasingly Bullish, As MAs Push ETH/USD Higher
Ethereum has bounced off the previous resistance and the 20 SMA
Ethereum was showing signs of strength during the last month of the great rally in the cryptocurrency market, as it took the lead from Bitcoin and continued to make new record highs. It printed a high of $4,380 in May according to my crypto broker, but then crashed down with the rest of the market, as the Chinese government opened its hand and showed the intention to drive this market out of the country.
Ethereum tumbled to $1740s in May and after bouncing to $2,900 it mane new lows to $1,700 lows, which according to my crypto broker come at $1,710. In the last three weeks, we have seen a bullish reversal in ETHEREUM , following the rest of the market again and it seems like this is turning into a one-way trade.
The latest retreat formed the perfect bullish reversing pattern at the previous resistance
The price moved above the moving averages without much resistance from them and the 20 SMA (gray) turned into support right away. Ethereum traders pushed the price above the previous resistance zone around $2,900, getting pretty close to $3,200 by the end of last week. I thought that the resistance around that area would make it difficult for Ethereum to push above $3,000, but the 20 SMA kept pushing higher without hesitating.
Yesterday we saw a reversal and a pullback lower, but the previous resistance turned into support without hesitating. It stopped the decline, getting help from the 20 SMA also, which keeps doing its job as in previous weeks. The candlestick before the big bullish one signaled a jump as well, closing as a doji which is a bullish signal.
Ethereum Live Chart
Today Ethereum has bounced from $2,900 and now it’s heading for last week’s high. So, the bullish momentum is still strong in Ethereum. The retreat yesterday was a great opportunity to buy ETH/USD, but it seems now that we lost the opportunity after the strong bounce, although we will try to buy Ethereum on another retrace to the 20 SMA or the support area around $2,900.
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