Ethereum price action was upbeat on Tuesday, with ETH trading at $3,445 after having gained 4.4 percent on the day. That has brought it near the long-term resistance level of $3,500, a mark that is considered a barrier to hitting the $4k mark.
Ethereum has been late to the party, with its performance subdued during the recent market rally. However, with gains of 11 percent in the last week, against Bitcoin’s 0.25% loss record over the same period, one can’t help but wonder if Ether has finally found its rhythm. Importantly, what does that tell us about its upside potential?
Ethereum price only tested the $3,500 mark twice since the post-election rally, and was quickly rejected in each instance. Therefore, with the price currently 15% off that mark, ETH’s current momentum raised chances of breaching that barrier in the coming days.
The Average Directional Index (ADX) reading on the hourly chart is at 31, showing that the upward momentum is strengthening. A move past the 50 ADX mark could trigger substantial bullish momentum to move the price toward the $3,500 level.
In addition, Ethereum’s DeFi performance has risen significantly in recent days. With its TVL having grown by 7% in the last week to stand at $66.43 billion as per DefiLlama, ETH demand is on the rise. Ethereum is the largest DeFi chain, accounting for over 54 percent of the total market. Therefore, an uptick in its performance spells good news for ETH price.
Top 10 DeFi chains and their performance in the last day, week and month. Source: DeFiLlama
Pivot: ETH price pivots at $3,455, with the RSI indicator favouring the upside.
Resistance: With the buyers in control, the next barrier could come at $3,507. Extended bullishness will break past that mark and could test $3,548.
Support: Initial support is likely to be at 3,395. A move below that level will invalidate the upside narrative and potentially clear the path to test 3,307.
This post was last modified on Nov 27, 2024, 13:12 GMT 13:12