Ethereum over the last two days has recovered by 20.88% from its lows of $2598. And, as the market is beginning to shift gears, the king altcoin is looking at a much bigger growth now. Well, that can only be possible if the bullish pressure continues to build up.
All rise! But Ethereum first
Three price levels have been extremely important in Ethereum’s rise and fall and have been in play since the beginning of the year. The first and currently critical resistance level is $3200. This has been tested as both resistance and support since August 2021. And, it plays a critical role in understanding the price action going ahead.
Since January, there have been attempts at breaching it, but Ethereum failed to do so.
This led the coin to recede at the $2760 zone, which must be tested as support to reach $3200. Moreover, on 26 February, Ethereum closed above $2760. Interestingly, although at the moment the candle is red, price indicators have changed their signals in favor of a rise.
Ethereum price action | Source: TradingView – AMBCrypto
The Parabolic SAR’s white dots moved underneath the candles on 26 February. Thus, indicating that an uptrend is active presently. The last time ETH was in an uptrend, the coin rallied by 34.57%. Thus, if ETH makes even half of that rise, which it already has, it would be able to breach $3200
Also, the MACD indicator has been supporting the above-mentioned narrative. MACD is right in contact with the signal line looking to make a bullish crossover. The receding bearishness of the red bars also points in that direction.
However, beyond price indicators, Ethereum investors will have to play a major role if they wish for a rally.
As it is, transaction volumes have already reduced from $20 billion in January to an average of $6 billion this month. But if ETH posts a green candle in the next 24 hours, this volume could rise back with new investors.
Ethereum transaction volumes | Source: Intotheblock – AMBCrypto
Furthermore, the network already has a 58.79% domination of HODLers, which is always a positive sign for a sustained rally.
Ethereum investor distribution | Source: Intotheblock – AMBCrypto