Ethereum continues its upward journey although it is not without its fair share of bumps along the way. However, the digital asset remains one of the most promising assets in the crypto space and it has shown this by its recent recovery. But even after successfully landing above $3,000, the cryptocurrency is still far from its all-time high around $5,000. However, long-term indicators paint a favorable picture for Ethereum.
Multiplying the moving averages
For the longest period after the December crash, Ethereum price traded below important moving averages such as the 50 and 100 day moving averages. This was mostly a direct result of the ongoing downtrend that has shaken not only digital assets, but the entire cryptocurrency market. However, with the recent recovery, Ethereum has managed to make huge strides in terms of price and is now above these important moving averages.
Ethereum made it above the 20 and 50 day moving averages first but found it difficult to score above the 100 day peer. The previous two saw indicators turn bullish for the digital asset in the short-term, however, as it continued to trade below the 100-day moving average, the longer-term outlook remained bleak.
ETH trading at $3,489 | Source: ETHUSD on TradingView.com
Regardless, ETH maintained the recovery trend, eventually reaching $3,000. This has sufficiently consolidated its position above the 100 and 200 day moving averages. Push it back into the long-term bullish zone.
On the year-to-date (YTD) chart, ETH also continues to perform well, ranking well above its year-to-date moving average.
Winning Point on Ethereum
As with any cryptocurrency, there will always be hurdles in the direction of recovery. For Ethereum, these obstacles lie in the resistance imposed by the bears above the $3,500 level. This level proved difficult for Ethereum to beat as the digital asset faltered a bit after trying to consolidate its position above this point.
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Although indicators are currently turning in favor of the buyers, these resistance points are still difficult to overcome. A major boost in momentum is needed to get the digital asset above the $3,542 resistance point. After that, the upside will see further pullback from the bears at $3,643. Above that, the asking price is $3807, and another is in line ahead of $4,000.
In the short term, Ethereum continues to perform well as evidenced by its current market position. The digital asset is trading at $3,459 at the time of writing and remains the second largest cryptocurrency by market capitalization.
Featured image from Coingape, chart from TradingView.com