Ethereum has emerged as one of the most popular assets in the market’s recent bull run. The cryptocurrency currently has a market capitalization of more than $ 320,000,000,000,000, the highest after Bitcoin.
Despite this good news, the asset has depreciated more than 55% from its all-time highs in the past few days, marking the biggest drop since the bull run began in March 2020.
However, if we look at the Ethereum chart on the daily timeframe, we can see how the overall trend is still bullish; Additionally, after hitting $ 2,000, the price appears to be recovering.
But how important is that level around $ 2,000? Well, there we find a strong area where the price has acted as support throughout the month of April preventing the price from falling below it. We are currently facing a very similar scenario where we also have the 100 and 200 period moving averages above price which could act as a confluence at these levels.
Additionally, if Ethereum decides to break the resistance at around $ 3,000, the cryptocurrency can most likely return to attack historical highs as long as it consolidates above those prices. Otherwise, we would see Ethereum in a range between $ 2,000 and $ 3,000.
But what can we expect in the short term? It is best to exercise caution and wait for the price to react at around $ 3,000 on the 4-hour chart as this is where we will find the 100 and 200 period moving averages.
If the price doesn’t manage to beat this area, your best bet is to wait for a lower configuration to try and get in for a long time. A good range for this would be around $ 2,550 where we have a well validated level with previous data that is consistent with the retest of the current downtrend line. If this scenario doesn’t happen, it is best to see the reaction at $ 2,000 or both scenarios with a target at $ 3,000.