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Over the last two weeks, the price of Ethereum has been extremely optimistic. During this time, the price of ETH has increased from a low of $1,651 to a high of $2,396 on July 4th, signifying a gain of more than 40%. Furthermore, some analysts predicted that ETH prices would rise higher when its daily addresses topped Bitcoin by 200K on June 27th, just the third time since January 2017.
While optimistic mood was on the rise, traders were still perplexed as ETH remained trapped between a critical major and resistance zone, which may determine its fate in the coming days. At the time of writing, ETH trade at $2,322, up by 2.8% over the last 24 hours.
Ethereum Daily Chart
After prices reset in their demand zone of $1,860-2,000, Ethereum’s daily chart revealed a down-channel breakthrough. For the first time in over a month, ETH’s 20-SMA (red) flipped back to bullish after a 38 percent surge. The short-term moving average also aided ETH’s breakthrough over its 50 percent Fibonacci extension of $2,246, while the 50-SMA (yellow) prevented additional gains. Moving forwards, a closure above the aforementioned Fibonacci level and subsequent consolidation would be beneficial to ETH’s long-term trend.
A break over its 50-day moving average (SMA) may possibly propel prices to the next objective of 78.6 percent Fibonacci extension ($2,586). However, traders must be cautious of a retracement below its 20-SMA and 38.2% Fibonacci extension as this could open doors for an even sharper retracement.
From the end of May to the middle of June, the 50 percent Fibonacci Extension of ETH was emphasised on multiple down stages. If ETH bulls keep prices above this level, the odds of an upward surge increase. Although the Awesome Oscillator indicated some positive momentum in the market, the index has yet to surge over the half-line. The Aroon up was near to 100 percent and higher than the Aroon down, indicating that an uptrend was still in effect. The +DI of the Directional Movement Index remained above the -DI, confirming Aroon’s stance. An ADX value of 16 indicated that ETH might experience some lateral movement before the next swing.
Because the ETH market has been less directional, some sideways movement might be predicted in the coming days. Bulls might make a break over the 50-SMA (yellow) and test the $2,500 barrier if prices remain above the 50 percent Fibonacci extension milestone at $2,246.