The cryptocurrency market is displaying cautious signs of recovery, with prominent assets like Ethereum (ETH) making slight advancements in the last 24 hours. After a significant drop that saw ETH’s price fall to $2,154 last Friday, the digital asset is now approaching the $2,400 threshold, generating optimism among investors.
Signs Of An Imminent Upside Breakout?
In a recent social media update on X (previously Twitter), market analyst Jesse Olson emphasized multiple bullish signals on Ethereum’s 8-hour chart, indicating a possible continuation of this rebound. A critical indicator is a pending buy signal, which could enable a return to previously lost levels, provided macroeconomic conditions are favorable.
Olson also notes a bullish divergence on the 8-hour chart, typically hinting at a momentum shift towards the upside. Moreover, a potential reversal candle has formed, suggesting that if the current trend continues, it could be advantageous for bullish investors aiming to take advantage of this recovery.
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Furthermore, the analyst points out that Ethereum’s price is currently reclaiming the 200-week moving average (MA), alongside recent movements in market indicators. The price has also surged past a downward trendline that has persisted since late August.
Nevertheless, maintaining this recovery will be essential for confirming these bullish indicators. Should Ethereum struggle to uphold its upward movement, it might lead to a retest of lower support levels or result in price consolidation within the $2,100 to $2,300 range.
Ethereum Price Approaching Key Resistance
Crypto analyst Daan Crypto Trades has echoed similar thoughts, asserting that Ethereum has strongly rebounded from support levels. However, he warns that trading within the $2,100 to $2,850 range may continue to be volatile.
Daan argues in a social media update that consolidation above $2,850 would signify a notable bullish milestone for Ethereum, legitimizing a breakout from the current downtrend and eyeing the critical $3,000 level, which has remained untouched since early August.
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Currently, ETH is trading at the upper boundary of the descending channel at $2,383, registering an increase of almost 2% over the last 24 hours, according to CoinGecko data.
This upward movement, however, is tempered by a decline in trading volume for the second largest cryptocurrency, which reached $12 billion in the past 48 hours, reflecting a 15% decrease compared to Monday’s trading sessions.
Moreover, over longer time frames, ETH’s price continues to be impacted by the significant drops observed over the past month, recording losses of 2.6% and nearly 7% in the fourteen and thirty-day intervals, respectively.
Featured image from DALL-E, chart from TradingView.com
