The cryptocurrency market is showing tentative signs of recovery, with major assets like Ethereum (ETH) seeing modest gains over the past 24 hours. After a steep decline that saw the price of ETH plummet to $2,154 last Friday, the digital asset is now approaching the $2,400 mark, sparking optimism among investors.
Signs of an imminent breakout to the upside?
In a recent social media posts On X (formerly Twitter), market expert Jesse Olson highlighted several bullish indicators on Ethereum’s 8-hour chart, suggesting a potential continuation of this recovery. One key signal is a pending buy indication, which could facilitate a recovery to previously lost levels if macroeconomic conditions align favorably.
Olson also points out a bullish divergence on the 8-hour chart, which typically signals a change in upward momentum. Additionally, a potential reversal candle has appeared, indicating that if the current momentum persists, it could bode well for bullish investors looking to capitalize on this recovery.
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Furthermore, the expert highlights that the price of Ethereum is currently recovering the 200-week moving average (MA) along with recent trends in market indicators. The price has also broken above the descending trend line that has been in place since late August.
However, sustaining this recovery will be crucial to validate these bullish signals. If Ethereum fails to maintain its upward trajectory, it could lead to a retest of lower support levels or result in price consolidation between the range of US$2,100 and US$2,300.
Ethereum Price Approaches Key Resistance
Crypto analyst Daan Crypto Trades echoed this sentiment, noting that Ethereum has bounced solidly from support levels. However, he cautions that trading in the $2,100 to $2,850 range could remain volatile.
Daan argues in a social media poststhat a consolidation above $2,850 would mark a significant bullish development for Ethereum, confirming a breakout of the current downtrend and setting targets for the key $3,000 level, which has not been reached since early August.
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As of now, ETH is trading at the top of the descending channel at $2,383, recording gains of nearly 2% over the 24-hour period, according to CoinGecko. data.
This increase, however, is offset by a drop in trading volume for the second-largest cryptocurrency on the market, which totaled $12 billion in the last 48 hours, specifically a 15% drop compared to Monday’s trading session.
Furthermore, in longer time frames, ETH Price still suffers from the sharp declines observed last month, recording losses of 2.6% and almost 7% in the fourteen- and thirty-day periods, respectively.
Featured image of DALL-E, chart from TradingView.com