Ethereum is currently trading at $3,533 after a rapid increase in price over the last 24 hours. It now rests above an historically crucial level of support at $3,500.
If this level is tested and is proven to hold, investors will appear bullish with targets of $3,750 and $4,000 respectively. These are the next two key resistance levels that the asset will have to conquer before it looks to break its all-time high again.
Given that short positions for the second largest cryptocurrency asset are beginning to dwindle, it can be assumed that the market sentiment is beginning to shift.
Furthermore, this recent price movement has been achieved through a majority of spot positions rather than leveraged positions, which indicates a healthier increase in price compared to previous periods.
From a technical point of view, the moving averages (MAs) are once again bullish with the smaller 50 period MA, and also above the longer 200 period MA.
It should be noted that, for this price action to continue, there needs to be a significant increase in volume to support it. If this fails, then Ethereum could be providing a false breakout, and move back down to its previous levels near $3,000.
Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.
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