The price of Ethereum is poised to pull the rug out from under all short-sellers and purchasers who have been hesitant to engage. Ethereum has built one of the most significant collections of bullish setups in many months, according to the technical circumstances on the price chart and the oscillators.
There are a few key technical levels and patterns to keep an eye on in the Ethereum price. The first is a pattern called inverted head-and-shoulders, which is currently being developed. With the 50 percent Fibonacci retracement and daily Tenkan-Sen sharing that shoulder, the current right shoulder (assuming it holds at this level) around $2,900 is a solid support zone.
Ethereum Developer Has High Hopes
Vitalik Buterin, the developer of Ethereum, is bullish on the cryptocurrency network, believing that it could soon become the world computer, a versatile foundation layer for online applications. In the last two weeks, the largest smart contract platform’s user base has expanded.
Because the present swing is modest owing to concealed bullish divergence, the oscillators verify the $2,900 level. When a candlestick chart shows higher lows but an oscillator shows lower lows, this is known as hidden bullish divergence. It’s an indication that the current slump is about to expire, and Ethereum’s price is about to resume its upward path. The fact that the divergence arises as Ethereum approaches the most important near-term support zone increases the chances of a bottom at $2,900.
If the altcoin’s price resumes its upward trend, the confluence zone at $3,300, where the 38.2 percent Fibonacci retracement and head-and-shoulders neckline cross, will be the next price resistance zone. The bottom of the Ichimoku Cloud (Senkou Span A), and the bottom of a past bull flag in that price range, however, continue to act as resistance at $3,400. If bulls can close ETH above that level, the path to $4,000 is all but certain.