Ethereum, the second largest cryptocurrency, has moved into a volatile zone that could drive the price of digital wealth even higher. The price saw a short-term downtrend but rebounded once it hit the support at $ 1,980.20.
At the time of writing, the price of Ethereum was hovering close to the resistance at $ 2,052.40 and was trading at $ 2,043. The market capitalization of the digital asset was reported at $ 238.42 billion.
Ethereum 1 hour chart
The graph above shows that the downward trend in price has led to more volatility in the market. However, while the market is rebuilding, it could shortly prepare for a surge.
This surge could be an opportunity for long traders.
The Bollinger Bands showed high market volatility as they broke up. While the signal line indicated that falling price has given way to the bears, while the 50 moving average has also acted as resistance.
However, there has been increasing buying pressure in the market. The relative strength index highlighted this mounting buying pressure as it moved from the oversold zone towards equilibrium.
While the great oscillator indicated that due to the fall, the momentum had shifted towards the bear. However, the recent green bars on the fantastic oscillator indicated that buyers have risen in the market. This could steer the momentum in the positive direction and help the bulls pull the price higher.
Entry level: $ 2,059.92
Take Profit: $ 2,138.46
Stop Level: $ 2,028.62
Reward risk: 2.51
The current Ethereum market has indicated that the price could see a spike if the price encounters resistance. As more buyers join in building the market, ETH traders can benefit when the price exceeds $ 2,039.
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