Within the preceding 24 hours, Ethereum (ETH) has risen more than 6%, recovering the important $4,000 milestone as the market turns green. As with several other top-cap cryptos, Ethereum is trading in the green at $4,049. Bitcoin (BTC) is driving the rally with a 7.45 percent gain, recovering the critical $48,000 mark, while Cardano (ADA) is up to $4.61 percent to $1.27.
Terra (LUNA) and Avalanche (AVAX) are the leading beneficiaries amongst the leading ten. LUNA has risen 12.30 percent to $84.35 to extend its climb following Kraken’s listing, while AVAX has risen 15.70 percent to trade beyond $119.81. Is the market preparing for a Santa Claus bounce during the holidays?
The price of Ethereum is expected to rise. Following the Reclamation of the $4,000 Support Level
From December 1, the price of Ethereum has been trading within a declining channel. The December rally off the channel’s support line was halted by opposition from the upper border of the declining channel at $4,060, showing that bears are dumping on rallies.
The latest gain, nevertheless, has witnessed the ETH price cut through the abovementioned barrier, and Ethereum currently trades over both the top limit of the channel and the $4,000 psychological threshold. This is a sign of a bullish breakthrough, and the price of Ethereum is expected to soar around $4,400.
Nevertheless, before hitting this level, ETH must conquer severe opposition from the 200-day Simple Moving Average around $4,307. (SMA).
Daily ETH/USD Trend
ETH/USD 1 DAY PRICE CHART: SOURCE – COINMARKETCAP.COM
The increasing trend of the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators of the relative strength index (RSI) indicate that the ETH market is bullish.
On the other hand, severe opposition from the $4,100 level may force the price to remain in the declining channel for a couple of extra days. The bulls may next seek to drive the price over the channel one more time. If they are successful, it may imply that the sale momentum is easing. Nevertheless, if the market falls underneath the channel, the bears may attempt to test the 200-day SMA for around $3,297. A breach and closing underneath this level might result in large sell orders, causing the ETH price to fall even more.