A widely followed crypto analyst says key indicators are flashing bullish signals for Ethereum (ETH) for the first time since November 2021.
In a new strategy session, pseudonymous crypto trader Altcoin Sherpa tells his 194,400 Twitter followers that the price of Ethereum is now trading above its one-day Exponential Moving Averages (EMAs) after a breakout.
Traders look at the EMA to determine whether an asset’s price is in an uptrend or not. If the price remains above the EMA, then the asset is likely going to remain bullish.
“Like Bitcoin, Ethereum finally has had a first bullish flip of all the one-day EMAs. That’s something we haven’t seen for many months. We haven’t really truly seen that since November 2021. We see on higher timeframes ETH, finally EMAs all look really solid. They’ve all tightened up and consolidated and we are now in a bullish trend in that regard.”
However, the trader warns that the top smart contract platform’s recent upswing could soon lose steam. He says the $2,000 level could act as resistance, and in the near term, ETH may dip back to the $1,700 level.
“Now, it’s important to note that we would really like to see a lot of follow up here. If you start to see a lot of trading and just a lot of consolidation here and it’s just chopping around, it’s more likely that this is just going to be a deviation and price is just going to go back within the trading range. And that’s probably, honestly, the more likely scenario.
When you see a breakout like this, you want to see some strong volume. You want to see more follow up and you want to see more momentum. If you start to see this chop around this area longer, then I think it’s more likely that this just goes right back within the trading range, and if it does go back within the trading range you would just look for one of these EMAs, probably $1,750.”
Ethereum is trading for $1,896 at time of writing, a 1.5% gain during the last 24 hours.
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