Ethereum (ETH) recently found support around $2,867, sparking a potential uptrend. Does this development signal the end of a correction? ETH has undergone a noticeable correction phase over the past few weeks. However, the recent bounce from key support levels indicates that this trend might be reversing.
Ethereum’s Support Level
Ethereum‘s price recently recovered from the 0.382 Fibonacci support level at around $2,867. After the initial jump, it returned to this support level. However, Ethereum has experienced a consistent upward trend during the recovery period over the last few days. Ethereum is now encountering significant resistance at the 50-day exponential moving average (EMA) around $3,277. Notable Fibonacci resistance levels are approximately between $3,320 and $3,650.
It might be beneficial to note that the correction phase could likely conclude with surpassing the golden ratio resistance around $3,650. Breaking the parallel descending channel could indicate a reversal to an upward trend for Ethereum. In such a scenario, Ethereum could potentially target or exceed its previous high of $4,095. Moreover, the daily chart EMAs continue to display the golden ratio.
ETH Current Data
Additionally, the moving average convergence/divergence (MACD) lines’ bullish crossover and the recent upward movement of the MACD histogram could further support the bullish outlook. However, the relative strength index (RSI) continues to remain neutral, not providing any indication of upward or downward momentum. Ethereum’s 4-hour chart recently showed a death cross, strengthening the short-term downward trend.
However, if Ethereum maintains its upward momentum and surpasses the 0.382 Fibonacci resistance level around $3,320, it could complete the golden ratio formation of the EMAs. Such a development could signal a short-term reversal to an upward trend. Additionally, current indicators point towards a bullish outlook. The MACD histogram is on an upward trajectory alongside the bullish MACD lines, while the RSI remains in the neutral zone.
