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21/05/24
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Technical Outlook on the Performance of Ether (ETH)
The chart of ETH/USD shows the formation of a base prior to the bulls initiating an upside move past the barrier area at $3,200. It seems speculation that the U.S. SEC will approve an ETH exchange-traded fund (ETF) this week prompted positive market sentiment. Traders used the opportunity to accumulate ETH, prompting significant rally above the barrier area at $3,350.
ETH’s performance has been better than BTC with a more than 20 percent increase in price. The bulls pushed ETH strongly past the barrier area at $3,500. It was able to reach a fresh weekly high level at $3,721 prior to the current consolidation of gains above the 23.6% Fibonacci correction level of the upswing from $3,067 swing low to $3,721 high.
A look at its 1-hour chart shows that it is currently trading at levels above $3,600, as well as above the 100 hourly SMA. The same chart shows the formation of a short-term rising channel with a support level at $3,640.
The next barrier level is close to $3,700 while the initial key barrier level is close to $3,720. If ETH breaks past the barrier level at $3,720, the bulls may be able to push it further to the upside.
The immediate major barrier level exists at $3,800 and a move above it may provide sufficient bullish momentum for a move to $3,880. The ability of the bulls to push ETH clearly past $3,880 may bring about a visit to the barrier level at $3,950. If there are any additional gains, the bulls may be able to pave the way for a move toward the barrier area at $4,000.
On the other hand, the failure of the bulls to push ETH clearly past the barrier area at $3,720 may empower the bears to initiate a new move to the downside. The first support level on the way downward is close to $3,640, as well as near the channel area.
The immediate key support level is close to the $3,600 area. The ability of the bears to pull ETH clearly beneath the support level at $3,600 may prompt a move to $3,500. If there are any additional losses, ETH may be compelled to move to $3,400 over the coming few sessions.
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