How Ethereum Could Break Above $2,000
Ethereum (ETH) has experienced another tremendous rally of about 130% since its June low. That said, in the short term, price action indicates that the $2,000 psychological level is still a difficult resistance to overcome. Here are three things that need to happen to give ETH a higher chance of breaking above $2,000.
#1 RSI Needs to Stay Above 50
The Relative Strength Index (RSI) needs to continue printing readings above the 50 mid-level. This will signal that there is positive momentum behind the current rally.
#2 Golden Crossover Signal Needs to Materialize
A golden crossover between the 100-day and 50-day simple moving averages is a significant bullish signal. The two moving averages are currently very close to one another, and the signal could happen anytime in the coming days.
A golden crossover can happen when the 50-day SMA crosses above the 200-day SMA, or when there is a bull cross of the 50-day and 100-day moving averages. By using the second combination of moving averages, we get the golden crossover signal much earlier.
#3 Pullbacks Need to Stay Above $1,500
Any pullback in price needs to fail above $1,500. Otherwise, we may end up breaking below the 100-day and 50-day simple moving averages and below crucial support levels. A break below $1,500 will diminish the probability of a continuation beyond $2,000.
Bottom line: For Ethereum's rally to continue to $2,000 and beyond, the RSI needs to stay above the mid-level 50, the 50 SMA needs to cross over above the 100 SMA daily chart, and finally, any pullback needs to remain above $1,500.
#1 RSI Needs to Stay Above 50
The Relative Strength Index (RSI) needs to continue printing readings above the 50 mid-level. This will signal that there is positive momentum behind the current rally.
#2 Golden Crossover Signal Needs to Materialize
A golden crossover between the 100-day and 50-day simple moving averages is a significant bullish signal. The two moving averages are currently very close to one another, and the signal could happen anytime in the coming days.
A golden crossover can happen when the 50-day SMA crosses above the 200-day SMA, or when there is a bull cross of the 50-day and 100-day moving averages. By using the second combination of moving averages, we get the golden crossover signal much earlier.
#3 Pullbacks Need to Stay Above $1,500
Any pullback in price needs to fail above $1,500. Otherwise, we may end up breaking below the 100-day and 50-day simple moving averages and below crucial support levels. A break below $1,500 will diminish the probability of a continuation beyond $2,000.
Bottom line: For Ethereum's rally to continue to $2,000 and beyond, the RSI needs to stay above the mid-level 50, the 50 SMA needs to cross over above the 100 SMA daily chart, and finally, any pullback needs to remain above $1,500.
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