Ethereum has been seeing a positive trend in its value following the US presidential election results. The cryptocurrency managed to climb above the 2,810 mark for the first time since August, indicating a strong upward movement. However, it encountered a hurdle at the 200-day simple moving average (SMA), causing the rally to pause momentarily.
Compared to bitcoin’s significant surge in 2024, ethereum is still working its way back to its March 2024 levels. Despite this, momentum indicators are showing bullish signals. The Relative Strength Index (RSI) has been steadily increasing, affirming the bullish pressure on ethereum. Additionally, the stochastic oscillator has entered the overbought (OB) territory, maintaining a considerable gap from its moving average. This could suggest a temporary stall before a potential downward movement, signaling a bearish trend.
If the bulls maintain their confidence, they will aim to keep ethereum above the 50% Fibonacci retracement level at 2,811 and challenge the resistance posed by the 200-day SMA. Success in this endeavor could pave the way for a push towards the 38.2% Fibonacci retracement level at 3,115, with the 3,000 mark being a significant hurdle to overcome first.
On the flip side, the bears will attempt to regain control. A drop below 2,811 could initiate a more prolonged downward trend. Breaking below the crucial May 27, 2024 trendline could clear the path for a potential decline towards the 2,500 level.
In summary, ethereum has seen positive movements in response to recent events, but it now faces a critical resistance level. Traders and investors will be closely monitoring the cryptocurrency’s performance in the coming days to gauge its future trajectory in the market.
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