Ethereum Leads The Market Wednesday And Crossed Above An Important Technical Level

Ethereum ETH/USD is leading the way in a green cryptocurrency market, trading higher than other popular cryptos like Bitcoin BTC/USD, Bitcoin Cash BCH/USD, Ethereum Classic ETC/USD, and Dogecoin DOGE/USD.

Ethereum crossed above the $3,500 level for the first time since May 18, 2021.

Ethereum was up 8.21% at $3,701.87 at last check Wednesday.

Ethereum Daily Chart Analysis

• Ethereum broke out of an ascending triangle pattern and retested old resistance as support before moving on its next leg up.
• The $3,000 level held as resistance for a time before the break above the level. Ethereum then went on to hold the $3,000 mark as support and pushed higher when sellers wouldn’t go below $3,000 anymore.
• The crypto trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating recent sentiment has been bullish.
• These moving averages may both hold as an area of support in the future.
• The Relative Strength Index (RSI) sits on the border of the overbought range at 70. This shows that there is more buying pressure in Ethereum than selling pressure.

What’s Next For Ethereum?

Bullish traders want to see Ethereum continue to move higher as it breaks out above previous resistance. Eventually, bulls want to see Ethereum cool off and consolidate for a time before pushing higher again.

Bearish traders want to see Ethereum drop back below the $3,000 level and move lower again. An ideal move for bears would be to see Ethereum drop below the higher low trendline to potentially start a downtrend.

Image by Peter Patel from Pixabay