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While the entire cryptocurrency market has rebounded from recent lows, Ethereum’s recovery has been particularly remarkable. In the previous three days, the world’s largest altcoin has gained 26% and reclaimed the $2,000 milestone. At the time of writing, the digital asset was trading at $2,156, up 9% in the previous 24 hours.
Ethereum 4-hour chart
The chart of ETH shows a significant breakout whenever prices move north of the top trendline of its down-channel. Prices were now heading towards a resistance level of $2,200, which coincided with the daily 20-SMA. A good breakout above these levels may propel ETH towards its 200-SMA (green) and 23.6 percent Fibonacci target, both of which are present around $2,341.
Such a result would represent an additional 10% gain from the press time threshold. Surprisingly, Visible Range’s point of control was likewise around $2,424 and was near to the previously indicated places. As a result, the area between $2,340 and $2,420 constituted a significant resistance zone and had the potential to limit ETH’s upside.
The Relative Strength Index was in positive territory, but a sustained increase into the overbought zone would signal a reversal. Despite ETH’s advances, its EMA Ribbons failed to cross, indicating that bear market conditions were yet to abate. Its constricted form, on the other hand, suggested that a reversal phase was in effect.
For the first time in over 15 days, the MACD climbed above equilibrium. While the aforementioned indicators pointed to a quick rebound, ETH was yet to rise above critical levels to fully persuade market analysts. A gain above $2,200 was undoubtedly on the cards, but sellers might expect a return of $2,340-2,420.
EThe comeback of TH might drive prices beyond $2,200 in the next sessions, although a crucial resistance zone is above this level. The price range of $2,340 to $2,420 may restrict gains and cause a brief pullback before ETH’s next ascent.