Ethereum is gaining further traction on its bullish run, but it could need more support from buyers on a correction. Price is hitting resistance around $645 and the Fib tool shows that the 50% retracement level lines up with potential support.
The 38.2% Fib is located at $588.30 and the 50% level is at $570.56. The 61.8% Fib is at $552.82 and the line in the sand might be the 78.6% Fib at $527.52.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. This suggests that the uptrend is more likely to resume than reverse. In addition, the gap between the two moving averages is widening to indicate strengthening bullish momentum.
The shorter-term SMA lines up with the 38.2% Fib to add to its strength as a floor while the 200 SMA is closer to the 61.8% retracement level and trend line.
Stochastic is on the move down to indicate that buyers are taking a break and letting sellers take over from here. However, the oscillator is nearing oversold levels to show that a return in buying pressure is due.
Sentiment in the industry has picked up significantly over the past few days as the tax season ended. This likely led to investors reopening their positions after recently crunching the numbers on their dues. Breaks past significant barriers also likely drew more buyers in.
Besides, news on regulation hasn’t quite made huge dents on ethereum price lately as traders focus on the positive developments. This includes the IMF’s more open-minded stance on cryptocurrencies and acquisitions in the space.
Another set of positive developments within the week could draw more buyers in and sustain the rise, especially as risk appetite has been present in global financial markets.