Ethereum becoming a more scalable cryptocurrency is aiding in the interdependency of NFT and DEX tokens based on the ERC20 theme. Being the second-largest cryptocurrency, ETH commands a market capitalization of over $390 billion.
The newly incorporated London Hard Fork has helped ETH get a buying sentiment from investors pushing it close to the immediate resistance levels. A hard fork is a permanent, irreversible change within the ETH blockchain. London Hard Fork has reduced the transaction fees and paved the way for the revolutionized ETH cryptocurrency mining.
Ethereum Price Analysis
Ethereum has taken off from its 200 Day Moving Average support without ever retesting the same. But after a good upside movement with consistent green candles, ETH too started to consolidate before its resistance level of $3380 and has been trying to break it for the last two weeks. We expect the current movement to take the Ethereum price beyond $3500 within a short span of time.
Ethereum is one of the only cryptocurrencies with a decent valuation, ideation, and constant evolution to achieve the best in its network. For the last month, buyers have been trying to cover the single-day sell-off of 28% on May 19, 2021, but have reached only the candle high today, August 23, 2021. Although everyone must be expecting a single candle breach of the resistance level, it is highly unlikely to happen given the drop in momentum and volumes over the last week.
ETH has a substantial support range from $2590 to $2915, and we expect the support to work in favor of bulls. Once ETH breaches the immediate resistance zone of $3390, we will be witnessing a rally towards a new all-time high. On indicator levels, RSI is still trading in the green and has bottomed out at 56 with an upside above 70, indicating a strong buying sentiment. MACD is showing a bearish divergence while ETH continues to move upwards, which is a contradictory sign.
Either the momentum in ETH will transform the buying sentiment and change the indication in the MACD graph or vice versa. Still, such a contradictory indication is a sign prompting restraint and carefully planned trades. One must not be trapped to buy at the very peak while ETH retraces under the indicators sentiment.
Ethereum cryptocurrency has been trading in a zone since August 13, and we expect the current price action to transform into a breakout. The resistance level for this consolidation becomes $3330, while there is support at $2958 levels.
As long as ETH trades above $3000, there will be strong sentiment for the cryptocurrency, which will help its scale past the $4200 levels. RSI on hourly charts is reaching towards overbought zones but swiftly retraces to oversold zones. Apart from price action, volumes on hourly charts seem to have topped out at the 03.00 am candle, and we have slowly entered the negative candle zones with much smaller volumes. This indicates the buying volume to be higher than selling volume, thus re-affirming our stance that ETH will be heading towards a new all-time high shortly.
ETH has finally breached the immediate resistance level after the third attempt and is retesting the levels after. We expect ETH to reach at least $3500 within the week before any consolidation kicks in.