- Ethereum has its price movements around $3,100 after declining to conquer the resistance area at $3,200.
- The altcoin should gather momentum to break past $3,200 to rally towards $4,000.
Ethereum took advantage of the brief market rebound on Thursday, reclaiming footing beyond $3,000. That came after the leading ‘smart’ contracts asset plummeted to $2,650 early this week. That was due to the high volatility recorded in the crypto market. Ethereum continued the bullish trend past $3,100 but stalled before testing $3,200.
Also, Bitcoin has been sluggish with its recoveries after the asset tested $40,000 support this week. However, the flagship cryptocurrency has closed its $44,000 gap, but it has not confirmed a break past $45,000.
ETH Must Close Past $3,200 to Confirm Upsurge to $4K
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The $3,200 resistance has challenged bulls, leading to a retracement towards $3,000. While publishing this content, ETH teeters at $3,100 as bulls battle to remove the engulfing selling momentum. Meanwhile, the alt bulls need to break past $3,200 to authorize the optimistic case targeting $4,000. Remember, the 50-day SMA might defy buyers as they attempt to achieve the goal. Also, the supply territory in red might hinder Ethereum from upsurges and initiate more losses.
According to the daily price chart, the moving average convergence divergence has hovered in bearish moves since 7 September. The technical indicator has contributed to the sluggish price actions as it maintains in the negative area below the mean line.
For now, traders should expect a buy gesture in the upcoming sessions to confirm the validity of an upsurge. Meanwhile, if the asset manages to trade beyond $3,200, it will strengthen bullishness to upper price levels.
If the asset records downward pressure, it might lose the support of around $3,000. Investors might indulge in massive sales due to panic. For now, the 100-d Simple Moving Average has strengthened the buyer congestion territory as the 200-d Simple Moving Average holds near $2,612 at the moment.
- Spot rate – $3,098
- Trend – bearish
- Volatility – low
- Support levels – $3,000, $2,650
- Resistance levels – $3,200, $3,600