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Ethereum, the second-largest cryptocurrency, has entered a volatile zone, which could drive the digital asset’s price even higher. In the short term, the price fell, but it recovered when it reached support at $1,980.20.
At the time of publication, Ethereum was selling at $2,043, near to the resistance level of $2,052.40. The digital asset’s market capitalisation was estimated to be $238.42 billion.
Ethereum 1-hour chart
According to the aforementioned map, the market’s volatility has increased due to the price’s downward trend. However, as the economy improves, it could be planning for a boom in the near future.
This spike will present an opportunity for long-term traders.
As the Bollinger Bands diverged, they indicated that the market was highly volatile. Whereas the signal line indicated that the dropping price had given way to the bears, the 50 moving average still served as opposition.
However, there has been an increase in purchasing pressure in the industry. As it pushed away from the oversold region and towards equilibrium, the relative strength index mirrored this increasing purchasing pressure.
The amazing oscillator, on the other hand, indicated that the energy had moved to the bear as a result of the crash. The latest green bars evident in the amazing oscillator, on the other hand, showed that customers were increasing in the industry. This might shift the balance in favour of the bulls, allowing them to push the price higher.
Take Profit: $2,138.46
Risk to Reward: 2.51
The existing Ethereum demand is signalling that the price will increase as it meets resistance. If more investors invest in the market’s growth, ETH traders will gain as the price increases above $2,039.