Ethereum rallied significantly over the past week, gaining nearly 53% appreciation. At the moment, ETH has managed to break through an important resistance bar of $1,500 and turn it into a support level. The coin maintained a rally after crossing the $1000 mark, a chance for a correction still remains on the horizon.
The bullish force has regained strength while the buying force has also increased. The invalidation of the bearish thesis began once ETH managed to break above $1200. If the coin remains above the $1500 mark, the bulls could propel the price higher.
The rally was also driven by bullish sentiment around the expected September merger. There are chances that the coin will reach $2000, but there are other resistances that ETH must overcome for this to happen.
The coin has been trading on an ascending trendline and it may soon see $1660 on its chart again. The global cryptocurrency market capitalization today is $1.12 trillion with 4.6% positive change in the last 24 hours.
Ethereum Price Analysis: Four-Hour Chart
ETH was trading at $1600 at the time of writing. The altcoin king broke the $1500 mark. The overhead resistance of the coin was $1660, the strength of the buyers could push ETH to touch $1660. Other important price caps were $1,745 and $1,800 respectively.
Once the coin breaks above the $1,800 mark, $2,000 can be seen on the chart for Ethereum. If the coin undergoes a correction, the first level of support would be at $1,300 and then at $1,200. The volume of Ethereum traded in the last session has increased, which means that the buying force has remained high.
ETH bulls pushed buyers back into the market. The altcoin has visited the overbought zone a few times over the past few weeks. The Relative Strength Index showed a slight uptick and was near the 70 mark, meaning that buyers far outnumbered sellers in the market.
Ethereum was above the 20-SMA, signaling the same that buyers were driving the price momentum in the market. Ethereum was parked above the 50-SMA and 200-SMA lines, signs of excessive bullish strength in the market.
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The increase in buying strength was reflected on the other indicators, however, the signals were mixed on the indicators. Moving Average Convergence Divergence represents price momentum and trend reversals. The MACD underwent a bearish crossover and showed red histograms.
These red histograms indicate a change in the price trend and also a sell signal for the altcoin. The Bollinger bands that indicate volatility remained wide. Broad Bollinger Bands signal risks of increased price volatility, meaning Ethereum could experience price swings.
Related Reading | TA: Ethereum Rally Might Start Again, Why Bulls Might Aim for $1,800
Featured image from UnSplash, chart from TradingView.com