Despite the bears’ attempts to bring the price down, Ethereum (ETH) managed to keep its head above water on Wednesday, topping $1,200 for most of the session.
Coingecko records indicate that at the time of writing, ETH is trading at $1,129.50, down 0.5% over the past week and still slightly below the previous day’s high of $1,228.88.
Although the ETH/USD pair dropped to an intraday low of $1,170.23 during the Tuesday session, the bulls managed to keep prices above this area.
Bulls have dominated the market in the past few days. A 40 percent increase in 10 days can undoubtedly be read constructively, but it is necessary to consider all possible outcomes.
According to the chart, ETH is currently trapped below a resistance area on the daily time frame.
Ethereum rally seen if the $1500 barrier is breached
This $1,300-$1,500 area (in red) was expected to provide significant support during the sharp drop earlier this month, but it clearly failed to do so. Now, it serves as a solid barrier.
With this mechanism in place, a rush of relief is likely to start if buyers can push the price above the horizontal barrier of $1,500. After that, the possibility of organizing a rally is revived.
Ethereum is expected to succeed in the coming months. Several improvements to the Ethereum chain will bring ETH out of its current slumber. However, the effectiveness will depend on the behavior of Ethereum holders in the coming weeks.
Next ETH Index Might Be $1,730
In the next bearish round, ETH price could drop to $750 if the bears maintain a tight grip on the market. Thus, if inflation continues to rise, the cryptocurrency may fall further. However, if the bulls take the lead, the next ETH index will be $1,730.
The recent move has pushed the price of Ether up by as much as 8 percent in the past week, with the 10-day moving average showing indications of potential higher gains.
Suggest reading | Ethereum (ETH) drops to $950 as crypto selloff deepens
ETH total market cap at $137.5 billion on the daily chart | Source: TradingView.com
If this short-term trend continues on its current trajectory, market watchers should note a crossover to the upside.
This could be the driver that pushes the price of the second largest cryptocurrency in the world above $1,400.
The cryptocurrency market, which has recently mirrored the stock market, has fallen victim to an even bigger sell-off of risky assets in the market.
However, as a result of the developments being made by the Ethereum team, especially Ethereum 2.0, the price of ETH is expected to rise this year.
Featured image CoinMarketDo, chart from TradingView.com