Ethereum started Wednesday with heavy fluctuations falling to $1,212 before the crypto began to rally. At $1,212, ETH avoided falling below the first key support level. A major or key support level is a price level at which there is a concentration of demand for an asset and acts as a floor.
That prevented the price from falling further. Instead, Ethereum rallied to hit $1,272, a 3.45% increase following a 0.04% gain on Tuesday. During the rally, ETH broke through major resistance levels, including the third major resistance level of $1,245.
However, it did experience a slight retreat at the end of the day and closed at $1,256. Despite this pullback, ETH remains above the third major resistance level, suggesting heavy buying pressure and investor optimism for ETH.
Overall, ETH’s performance on Wednesday is positive, with the price reaching a new price level not seen since 16 December. Furthermore, Ethereum is currently exhibiting bullish signals based on the positioning of its moving averages and the patterns on its 4-hour candlestick chart.
If it can maintain its position above a certain moving average, it could rise to target a certain price level. However, if it falls below this moving average, it could slide to potentially reach another price level, which would also be a bearish signal.
ETH is currently above the 200-day EMA (Exponential Moving Average), which is currently at $1,230. If ETH can hold above the 200-day EMA, it could move toward the first major resistance level at $1,281 and reach $1,300.
However, if it falls below the 200-day EMA, it could slide through the 50-day and 100-day EMAs, reaching the first major support level at $1,221. A fall through the 50-day EMA would indicate a bearish trend.
After a dismal start, the price of Bitcoin rose by 1.05% after a slight drop of 0.01% Tuesday. Bitcoin hit a $17,000 price level on Wednesday, the first time in over 20 sessions. However, Bitcoin fell to $16,671 early in the day before rallying later to break through some resistance levels before ending the day at $16,864.
The price of Bitcoin (BTC) must avoid falling below $16,847, called the pivot, to target the first main resistance level at $17,024. If it can reach this level, it could gesture a bullish trend. However, favorable conditions in the US market need to support this trend.
If BTC prices continue to rise, BTC may reach the second and third major resistance levels at $17,250 and $17,519, respectively. On the other hand, if it falls below the pivot, it could reach the first major support level. Still, according to fxempire, it should stay above a certain level unless there is a significant negative event in the crypto market.