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22/05/24
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Technical Outlook on the Performance of Ether (ETH)
Positive sentiment ensued after it was reported that the U.S. SEC may approve a spot ETH ETF this week. Traders used the opportunity to buy ETH massively, prompting a new surge in its price. The bulls were able to push ETH past two barrier levels, including $3,500 and $3,650.
The performance of ETH was better than BTC as there was a move past $3,750. ETH hit a new weekly high level at $3,838 prior to initiating current consolidation of gains. Likewise, its current performance is quite at levels above the 23.6% Fibonacci correction level of the upside move from $3,065 swing low to $3,838 high.
ETH is currently trading at price levels above $3,700 as well as above the 100 hourly SMA. A look at its 1-hour chart shows the formation of a short-term bullish trend line with a support level at $3,710.
The next barrier level is close to $3,840. The initial key barrier level is close to $3,880. If ETH breaks past the barrier level at $3,880, the bulls may be able to push it higher. The immediate major barrier level is located at $3,950 and a move above it may provide bullish momentum for a push toward $4,000.
The ability of the bulls to push ETH clearly past $4,000 may bring about more upside moves, as well as a visit to the barrier level at $4,080. If there are any additional gains, they may be able to pave the way for a move toward the barrier area at $4,200.
On the other hand, the failure of the bulls to push ETH clearly past the barrier level at $3,840 may empower the bears to initiate a new move to the downside. The first support level on the way downward is close to $3,710, as well as near the trend line.
The immediate key support level is close to the $3,620 area. The ability of the bears to pull ETH clearly beneath the support level at $3,620 may bring about a move toward $3,450 or the 50% Fibonacci correction level of the upside move from $3,065 swing low to $3,838 high. If there are any additional losses, the bears may be able to pull ETH toward $3,380 over the coming few sessions.
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