Ethereum Coin Bullish Bias Dominates – Major Resistance at $3,200

The ETH/USD closed at $3,162.05, after placing a high of $3,135.37, and a low of $2,895.64. On Monday, ETH/USD resumed its bullish momentum, after falling for a day in the previous five days. The coin also followed the trend set by the leading cryptocurrency, Bitcoin, remaining high onboard due to recent improvements in its network that kept supporting its prices by attracting new investors.

Just five days after the successful launch of Ethereum’s London hard fork, the native coin of the Ethereum blockchain, Ether, climbed from below $2,500 to almost $3,200. The market capitalization of Ethereum also surged, rising to $365 billion. Ethereum, which is the second-largest cryptocurrency by market cap, has risen above $3,100 – a level that it has not touched since the end of May.

The whole cryptocurrency market has been very excited about the recent network upgrade in Ethereum. The experts have predicted that this development will positively impact the price of ETH, as it will bring transparency to the whole transaction fees network.

The head economist at the blockchain company ConsenSys, Lex Sokolin, has commented on Ethereum. He said Ethereum could now support more complex computational use cases, like marketplaces, social networks and various creative tribes, with more scalability.  The expert noted that the price of Ethereum tokens would rise in the long-term, as this has built up a positive investor sentiment surrounding the world’s second-largest cryptocurrency.

According to the co-founder of Ethereum, Vitalik Buterin, the recent upgrade will also make the Ethereum network more environmentally friendly. They will make adjustments that will reduce its energy use substantially. All these transformations in the Ethereum network put upward pressure on the ETH prices, and the cryptocurrency has been following the trend since the upgrade.

Moreover, former Goldman Sachs executive Raoul Pal has said that he believes that Ethereum is the greatest trade setup that he has ever seen. This statement was due to the largest upside ahead, amid the improved fundamentals of the cryptocurrency.

Pal said that the fundamentals of Ethereum that were currently forming, were better than the one Bitcoin enjoyed in March 2020, when Bitcoin hit an all-time high near $64,000. He said that reducing the supply of available ETH will positively impact its prices in the long run. He said just 13% of Ethereum’s free float was currently available, whereas the rest was being staked, locked, and hoarded. The comments by the former Goldman Sachs executive also added further strength to the already rising prices of ETH/USD.

Support             Resistance
2,976.67            3,266.40
2,791.29            3,370.75
2,686.94           3,556.13
Pivot Point:      3,081.02

On Tuesday, the Ethereum Coin continues to trade choppily, below a significant resistance level of 3,200. On the 4-hour timeframe, the coin has formed an upward channel, supporting a bullish trend in ETH/USD. This upward channel is supporting the currency pair at the 3,020 level.

On the higher side, a breakout at the 3,200 level could lead Ethereum towards the next major resistance level of 3,335 and 3,556. Conversely, a breakout of the support level of 3,030 could extend the selling trend until 2,900. A bullish bias dominates over the 3,200 resistance level; therefore, let’s consider taking a buying trade there. Good luck!