Will Ethereum Rush To Join The Recovery Party Above $600?

Ethereum [ETH] has been quite steady when it comes to its price movement as it remained in a positive zone. Its price was still 45% higher than it was in the month of November. However, it has been unsuccessful in breaching the $600-level even after weeks of consolidation. The largest altcoin has so far failed to steer clear of crucial resistance and was hovering quite close to it.

Ethereum was being traded at $585.7 after a rise of 1.13%  over the past 24-hours. At the time of writing, ETH recorded a market cap of $66.6 billion and a 24-hour trading volume of $9.41 billion. Currently, the ETH/USD pair was flashing green signals. But there is also a possibility that the pair could correct lower if its attempt to an upside break does not materialize.

Ethereum [ETH] Daily Chart:

The daily chart of Ethereum depicted a gradual uptrend followed by the price candles which was mimicked by the daily market averages. The 50 DMA [Pink] noted a slight bent towards the negative side after the latest downside correction. However, it has managed to hold up the gauge against the 100 DMA [blue] which continued to hover quite below the former.

This was a positive indication for the coin which signalled the bullish pressure despite Ethereum being rejected at key levels.

The crypto-asset’s technicals depicted an ambiguous picture. The MACD indicated a bearish divergence as ETH recorded a higher high while the MACD line formed a lower high. The higher high in the coin was normal for an uptrend, but the lower high in the MACD essentially evidenced less upside momentum.

The RSI also fell close to the 50-median line depicting a decline in buy pressure. This trend was, however, short-lived as it bounced straight back up. This movement affirmed the recovery in market sentiment in tandem with the price rise of Ethereum.

The price of the coin is likely to accelerate higher if manages to clear the $595 and $600 resistance levels. Following this, Ethereum could target another crucial level of $617 and $712 respectively, in an event of an extended crypto rally.

Failure to avoid a drop through the current level could potentially bring the first major support level at $541 into play. The DMAs also acted as important support points for the coin at $505 and $436.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.