Benzinga -
- Ethereum has been struggling to break and maintain its position above the $2,000 psychological price level.
- Despite this struggle, there are positive indicators for Ethereum, including trading above both the weekly and daily 200 simple moving averages (SMA), suggesting a potential bullish trend.
The cryptocurrency market has been a rollercoaster ride for investors lately, with prices experiencing volatile ups and downs. Ethereum (CRYPTO: ETH), the world's second-largest cryptocurrency by market cap, has been no exception.
Recently, Ethereum has been wrestling with the $2,000 psychological price level, attempting to break up through it and maintain its position above this critical threshold.
In the middle of April, Ethereum managed to push past the $2,000 mark, sparking hope of an upsurge among investors. However, this bull momentum was short-lived, as the price fell back below $2,000 just a few days later.
The inability to maintain its position above $2,000 reinforces the psychological impact this level has on the mindset of the buyers and sellers, influencing their buying and selling habits.
Despite the struggle with the $2,000 round number, there are still positive indicators suggesting that Ethereum could be on the verge of a bullish trend.
Price is currently trading above both the weekly and daily 200 simple moving averages (SMA), which is a strong sign that the overall momentum favors the bulls.
Additionally, the daily 50 SMA is a crucial support level for Ethereum, preventing price from falling too far and potentially aiding its ascent. This moving average has proven to be a reliable lifeline for the digital currency in its ongoing battle with the $2,000 mark.
On Wednesday, Ethereum experienced a 5.4% surge, instilling hope among investors that the $2,000 barrier could finally be conquered. However, sellers quickly entered the market and forcefully pulled price back down to near the opening level for the day.
This volatile period serves as a reminder of the importance of making decisions based on end-of-day data rather than intraday fluctuations, as it provides a clearer picture of price action.
For Ethereum to successfully break through the $2,000 level, it must rely on the daily 50 SMA as a critical support. If this support fails, price could plummet to the next major support level, the daily 200 SMA, which is more than $300 below the current price.
The ongoing struggle between Ethereum and the $2,000 price level demonstrates the unpredictable nature of the cryptocurrency market. While there are bullish trend indicators in place, it is crucial for investors to closely monitor the daily 50 SMA as a lifeline for Ethereum's ascent.
As the battle with the $2,000 round number continues, only time will tell if Ethereum can overcome this significant hurdle and embark on a new phase of growth.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.