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ETH battles immediate resistance, and bulls look toward $2,000

ETH/USD price chart


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  • Ethereum is on the verge of a breakout, but first, it must break the 50-day resistance.
  • A step beyond the ascending channel’s middle boundary will open the door for gains aiming for $2,000.

Ethereum managed to sustain the uptrend above $1,400, avoiding the drop to $1,200. Recovery, although gradual, seems to be coming into the picture toward the end of the Asian session on Wednesday. Ether is exchanging hands at $1,520 while bulls fight to break above an immediate but crucial resistance level.

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Nexo

The daily chart highlights the resistance brought about by the 50 Simple Moving Average (SMA). If bulls overcome this hurdle, the journey toward $1,600 will become apparent. On the other hand, bulls must focus on stepping above the seller congestion zone at $1,600 to pave the way for gains eying $2,000.

The bullish outlook has been validated by the Relative Strength Index (RSI) as the indicator slowly approached the midline. A further movement toward the overbought area will cement the bulls’ influence over the price.

Simultaneously, Ether is trading within the confines of an ascending parallel channel. The pattern’s support played a key role in stopping the potential losses to $1,200 earlier this week. Moreover, buyers are using the lower edge of the channel as a springboard to higher levels. Note that trading above the channel’s middle’s boundary resistance might trigger massive buy orders as Ethereum is catapulted toward the coveted $2,000.

ETH/USD daily chart

ETH/USD price chart
ETH/USD price chart by Tradingview

On the other hand, the remarkable breakout may fail to occur if the immediate 50-day resistance remains intact. Simultaneously, if overhead pressure increases, Ethereum will retest the support at the channel’s lower edge. If this buyer congestion zone is shattered, ETH will spiral toward $1,200 in search of formidable support.

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Cryptocoincoach

Ethereum intraday levels

Spot rate: $1,520

Relative change: 30

Percentage change: 2%

Volatility: Low

Trend: Bullish

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

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