Ethereum Manages To Hold Above A Critical Level: What's Next?

Ethereum ETH/USD is trading higher Wednesday, being able to hold above a key level.

Arrow Glacier, an upgrade to the Ethereum network, is slated to go into effect on Dec. 9. This upgrade is supposed to help with the switch from proof-of-work to proof-of-stake platform.

Ethereum was up 2.7% at $4,403.98 at time of publication. 

Related: Here's Why Ethereum Holding Above $4,000 Is Important

Ethereum Daily Chart Analysis

• Ethereum broke above resistance in what technical traders call an ascending triangle pattern and is now holding above the old resistance level as support.
• The $4,000 level is holding as an area of support on the Ethereum chart. This area had been resistance on the chart for months, but after finally crossing it, the cryptocurrency was able to hold above and looks to be consolidating.
• The crypto trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto looks to have bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) looks to be consolidating for the past few weeks and now sits at 52 on the indicator. This shows that the amount of buying and selling pressure has been relatively equal for the past couple of weeks.

See Also: Ethereum Classic Follows Bitcoin, Decouples From Ethereum: What's Next For The Crypto?

What’s Next For Ethereum?

Bullish traders want to see Ethereum continue to hold above the $4,000 level. This will show that buyers are buying it where sellers once were selling, hinting that this may be the new floor. Bulls then want to see Ethereum start to form higher lows in time.

Bearish traders want to see Ethereum crack below the $4,000 level and be unable to cross back above it. Bears are then looking to see the crypto fall below the moving averages and down to the higher low trendline. If price falls below the moving averages, sentiment may turn bearish.