The price of Ethereum (ETH) has been whipping between the red and green zone in today’s session. ETH has posted strong gains to move from $2,159.0 to the February highs at $3,824.75. The price has flipped a crucial barrier, suggesting investors are piling up near the lower level. Going forward, the expectation of increased buying pressure is ripping away.
Ethereum (ETH) price accumulates gains on Friday. ETH is consolidating in the rising wedge pattern. Momentum oscillators are supporting the bullish outlook in the altcoin.
According to Investment Banking Morgan Stanley, the Ethereum market could be an even bigger market than Bitcoin in the future. Ethereum except sharing similarity with the largest cryptocurrency Bitcoin, as it owns a “larger set of activities”. According to the data from Defi Llama, currently Ether, the original coin of the Ethereum Blockchain accounts for 59.35% of Defi activity with over $123 billion locked in Ethereum-based protocols.
Morgon Stanley analyst also emphasized that Ethereum is considered a hedge of stocks. ETH is almost twice correlated with the S&P 500 at 0.26 versus 0.14 for bitcoin.
Furthermore, 97% of the nearly $19.5 billion NFT volume is on the Ethereum blockchain.
Ethereum faces upside risk on the daily chart
Eth traded in the rising wedge pattern, which is a bearish reversal pattern. ETH is up nearly 52% from the $2,159.0 lows. Investors have tested the lower trendline of the pattern many times but failed to reach the upper trendline. The reading suggests that bulls lack conviction and confidence to continue the upward momentum.
Source: Trade View
In addition, the price lowered the 50-day Simple Moving Average (SMA) to $3,211.41. If selling pressures are maintained, the chance of hitting the lows near $2,800 cannot be ruled out.
Now, a decisive break in the pattern would see the meeting of a $2,500 horizontal support line.
On the other hand, after buyers are able to pull out 50-day SMA, it will make the road easier to reach $3,500.
RSI: The Relative Strength Index (RSI) is trading near 50, the momentum indicator is spinning towards the moving average. Any downtrend could trigger new sales in the pair.
MACD: The Moving Average Convergence Divergence (MACD) is holding close to the centerline with a bullish bias.
Mixed signals from the technical indicators suggest that ETH needs conviction in a certain direction to continue trading.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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This post Ethereum (ETH) Price Today: ETH Prepares for $3,500k
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