As the market goes green, Ethereum (ETH) has risen almost 3% in the last 24 hours to retake the important $4,000 milestone.
As with several other top-cap cryptos, the price of Ethereum is now trading in the green around $4,033. Bitcoin (BTC) is leading the rally with a 3.64 percent gain, recovering the critical $48,000 mark, while Cardano (ADA) is up to $0.35 percent to $1.26.
Terra (LUNA) and Avalanche (AVAX) are the top gainers among the top ten. LUNA is up 4% to $82.71 to continue its surge following the Kraken listing, while AVAX is up 11% to trade beyond $110. Is the stock market preparing for a holiday Santa Claus rally?
After reclaiming the $4,000 support level, Ethereum’s price will begin to rise
Since December 1, the price of Ethereum has been trading in a declining channel. The opposition from the upper border of the falling channel around $4,060 blocked the rebound off the channel’s support line in December, showing that bears are selling on rallies.
However, the latest rise has seen the ETH price break past the aforementioned barrier, and Ethereum now trades above both the upper channel border and the psychological threshold of $4,000. This is a confirmation of a bullish breakout, indicating that Ethereum’s price will likely surge towards $4,400.
However, ETH must first overcome severe resistance from the 200-day Simple Moving Average around $4,307 before hitting this level (SMA).
The relative strength index (RSI) and the Moving Average Convergence Divergence (MACD) indicator are both trending upward, indicating that the ETH market is optimistic.
Strong resistance from the $4,100 level, on the other hand, might prolong the stay inside the downward channel for a few more days. The bulls may next seek to drive the price above the channel once more.
If they succeed, it means that the selling pressure is beginning to ease. The bears might attack the 200-day SMA at $3,297 if the price breaks below the channel. A break and closing below this level might result in large sell orders, pushing the ETH price down even more.