Ethereum (ETH) could be looking to register a more substantial price rally, as signals from its daily and monthly indicators suggest an imminent price upswing.
The asset’s latest uptrend began on the back of Bitcoin’s price appreciation, as the leading asset moves to conquer the $42,000 psychological price territory. ETH, whose price action correlates with Bitcoin’s, has recorded similar price gains, helping it to reclaim the $2,200 price level for the first time since last May.
The journey to the reclamation of this lofty price position was not without hurdles. Notably, Ethereum’s latest price momentum picked up the pace at the end of November after it recovered the $2,000 level in mid November. ETH had continued to face resistance at $2,000 until it flipped it into support on Nov. 30.
The asset then began December with a favorable outlook, looking to conquer the resistance points above $2,000. Its mission has been largely successful with less than a week into the new month. ETH turned $2,100 into support on Dec. 2 and used this point as a launchpad to reclaim $2,200.
Indicators Signal a Potential ETH Surge
Now, it looks to solidify its position above $2,200, currently changing hands at $2,204. Amid these bullish prospects, ETH’s technicals are looking good, adding weight to sentiments surrounding a continuation of the bull run and an imminent price surge.
One of these indicators is the 21-day EMA, which Ethereum recently broke above. Notably, breaking above the 21-day EMA is a sign of a looming price upswing. The last time ETH broke and closed above the 21-day EMA was on March 11.
The asset eventually soared 51% to $2,140 in April, a new yearly peak at the time. With Ethereum now trading above the pivotal moving average for the second time this year, it has never been in a better price position.
A second indicator of Ethereum’s favorable position is its price above the 50-day EMA ($1,958) and 200-day EMA ($1,807). Currently trading for $2,204, ETH is way above these moving averages, signaling bullish momentum in the short and long terms. In addition, the 50-day EMA recently crossed above the 200-day EMA, marking a golden cross.
Growing Buying Interest
Moreover, on the monthly timeframe, things are also looking good for Ethereum. Despite the recent price surge, the monthly Relative Strength Index (RSI) remains in a fairly stable position, currently at 55.
An RSI of 55 during an uptrend suggests a potential continuation of the bullish momentum. It indicates that the upward price movement is steady without being excessively overbought, providing room for further upside potential. This reading suggests a healthy trend with the possibility of sustained buying interest in ETH.
Meanwhile, Ethereum whales have shown an affinity toward the asset of late, with buying interest on the high side. IntoTheBlock recently confirmed that the percentage of ETH supply held by whales has increased to 35%. This rate was 22% in January.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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