Trying to Buy Ethereum, Since the Buying Pressure Remains Strong
Ethereum keeps the strong buying pressure on, with smaller MAs pushing it up
Ethereum was one of the last cryptocurrencies to keep the bullish momentum going in May, while Bitcoin and other cryptos had already started to turn bearish in April. Ethereum also formed a support level around $1,700, which held for a few months and was itching to get higher, while for other cryptos, the lows were getting lower during this time.
This showed that Ethereum was going to be the first to jump higher once the sentiment in the bullish trend shifted from bearish to bullish. Now after the reversal, Ethereum has turned into one of the most bullish cryptocurrencies, having climbed from around $1,700 to $3,250. That means a gain of nearly 100% in value, which is more than what most of the crypto market has gained. This supports the strong bullish bias that we also highlighted on our 2021 Ethereum forecast.
So, the buying pressure has been strong in ETH/USD and the moving averages confirm this. We can see that smaller moving averages have been acting as support in Ethereum since the price climbed above them in July. This indicates decent buying pressure, since buyers are not waiting for deeper pullbacks, but rather jumping in on the first opportunity they find instead.
Ethereum Live Chart
I would like to get in on this bullish trend in ETHEREUM, since it has been showing signs of strength throughout the year. The London Hard Fork that was implemented on August 5 is making the Ethereum network more attractive, with increased scalability and predictability of mining fees, which have been increasing for Ethereum.
But, we haven’t seen decent pullbacks since the reversal started last month. Sellers have been weak and the smaller moving averages such as the 20 SMA (gray) and the 50 SMA (yellow) have been pushing the price higher. The latest retrace down, which happened yesterday, ended at the 20 SMA on the H4 chart, and we were waiting to buy at the 50 SMA, but that didn’t happen. So, we missed another opportunity to go long on ETH/US, but we will do so if we see a deeper pullback lower.
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