Altcoins, particularly DeFi and NFT tokens, are exhibiting notable strength, hinting at a possible altcoin season where they could potentially outperform Bitcoin in the near future. A resurgence in the ETH/BTC pair could serve as a catalyst for altcoins to ascend towards their mid-range levels.
Recent accumulation of ERC-20 tokens, including assets like LINK and Pepe, by whales suggests a bullish trajectory for Ethereum and its associated tokens.
Ripple CEO’s Ethereum Support
The backing of Ethereum by Ripple CEO Brad Garlinghouse amidst the SEC‘s classification efforts strengthens the argument against stringent crypto regulations. This alignment has the potential to foster positive outcomes for the broader crypto industry.
ETH/USD Technical Analysis
Ethereum has maintained its position above its 200-day exponential moving average, signaling a positive long-term trend.
While overcoming resistance levels at $3,050 and $3,120, Ethereum encountered obstacles near the $3,165 mark. However, a bullish trend line has formed with support at $3,110, suggesting prospects for further upside movement.
Immediate resistance levels are anticipated at $3,165, with significant barriers at $3,200 and $3,250. A breakthrough above $3,350 could propel Ethereum towards targets at $3,500 and $3,620.
Support Levels in Focus
In the event of a downturn, initial support is expected around $3,100, followed by the trend line and the 50% Fib retracement level at $3,000. The primary support zone rests at $2,940, with a breach potentially leading to levels at $2,820 and $2,650.
Technical Indicators
On the hourly chart, the MACD momentum is exhibiting a slowdown within the bullish zone, while the RSI remains above 50, indicating a balanced state without extreme overbought or oversold conditions.
The recent consolidation phase suggests Ethereum may be gearing up for its next significant move. Ethereum currently navigates a wait-and-see phase, where a breakout above $3,165 could trigger further upward momentum, whereas a dip below $3,000 might prompt a corrective phase in price.
