ether (CRYPTO: ETH) will trade higher on Wednesday and may hold above a key level.
Arrow Glacier, an upgrade to the Ethereum network, is slated to go into effect on December 9th. This upgrade is designed to help you move from the proof-of-work to the proof-of-stake platform.
Ethereum was up 2.7% to $ 4,403.98 at the time of publication.
Related: This is why it is important that Ethereum hold over $ 4,000
Ethereum daily chart analysis
- Ethereum broke resistance in what technical traders call an ascending triangle pattern and is now holding above the old resistance level as support.
- The USD 4,000 level is considered to be the area of support on the Ethereum chart. This area has been a resistance on the chart for months, but after finally crossing it, the cryptocurrency has held up and appears to be consolidating.
- The crypto is trading above both the 50-day moving average (green) and the 200-day moving average (blue), suggesting that the crypto appears to be in bullish sentiment.
- Any of these moving averages could be considered a possible area of support in the future.
- The Relative Strength Index (RSI) seems to be consolidating in the last few weeks and is now at 52 on the indicator. This shows that buying and selling pressures have been relatively the same over the past few weeks.
See also: Ethereum Classic follows Bitcoin, decouples from Ethereum: What’s next for crypto?
What’s next for Ethereum?
Bullish traders want Ethereum to continue above the $ 4,000 mark. This shows that buyers are buying it where sellers once sold, suggesting that this could be the new floor. Bulls then want Ethereum to make higher lows in time.
Bearish traders want Ethereum to break below the $ 4,000 mark and not be able to return above that. The bears then try to see the crypto drop below the moving averages and onto the higher low trendline. When the price drops below the moving averages, sentiment can turn bearish.
Comments are closed.