On Wednesday, the price of Ethereum experienced an upward surge, resulting in it surpassing the $1,650 mark. This signifies a significant positive shift in the value of Ethereum and indicates a promising outlook for the cryptocurrency market
On the midweek day of Wednesday, Ethereum (ETH) demonstrated a remarkable increase in value as its prices surged beyond $1,650. The ETH/USD pair surged to a high of $1,658.69, earlier today, which is an impressive feat considering that less than 24 hours ago it was struggling to remain above the $1,600 mark.
This sudden and substantial surge has led to Ethereum’s achieving its strongest point since the previous Thursday, which indicates that the market is showing a bullish sentiment toward ETH
Furthermore, it should be noted that there has been an increase in price strength that has surpassed a previous resistance level at the 53.00 mark. As of the time of writing, the index is currently tracking at 54.68. However, despite this positive trend, there is still a potential risk of a sell-off shortly. This is due to the 10-day moving average, represented in red, appearing poised to cross below the 25-day moving average, represented in blue.
Such a crossover could indicate a bearish trend and potentially prompt investors to sell off their ETH holdings, which may result in a price drop. If this were to occur, there is a possibility that the price of ETH could decrease to as low as $1,550, representing a significant decline in value
Ethereum Price Faces Obstacles
The price of Ethereum had a new surge of momentum after finding support around the $1,600 mark. It managed to surpass resistance at $1,620 and $1,640 levels, which helped to prevent further losses.
This upward trend mirrored that of Bitcoin. However, the bears were able to gain some ground once the price approached the $1,660 and $1,665 levels. Despite this, a new high of $1,668 was achieved, and the price is now consolidating its gains.
It is worth noting that Ether’s price is still below the 23.6% Fibonacci retracement level, which is calculated based on the upward move from the $1,597 swing low to the $1,668 high.
Nonetheless, the cryptocurrency is currently trading above $1,620 and the 100 hourly simple moving average, which indicates bullish momentum. Additionally, an essential bullish trend line is forming with support close to $1,630 on the hourly chart of ETH/USD
Looking at the positive aspects, it can be observed that the price is currently encountering an obstacle in the vicinity of the $1,665 range. However, the good news is that the first significant hurdle is located around the $1,700 region. If the price manages to surpass this level, it may potentially escalate smoothly.
Moreover, the subsequent critical hindrance is positioned in the vicinity of the $1,740 zone. If the price concludes a close above this particular resistance zone, it might initiate a new upward trend. In that scenario, the price could increase toward the $1,880 level, presenting an excellent opportunity for traders and investors to make substantial profits
This suggests that Ethereum has experienced a surge in price momentum and has surpassed certain resistance levels. Although the bears were able to gain some ground, the price is still consolidating its gains and encountering an obstacle around the $1,665 range.
However, there are positive indicators, such as the formation of a bullish trend line and trading above the 100 hourly simple moving average, which suggests bullish momentum. If the price manages to surpass the $1,700 and $1,740 resistance zones, it may initiate a new upward trend, potentially increasing toward the $1,880 level. This presents an excellent opportunity for traders and investors to make substantial profits.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.