Will Ethereum Keep Climbing? Overcoming These Key Levels Could End The Bear Cycle

Ethereum ETH/USD was flying up over 5% higher on Tuesday morning before the SPDR S&P 500 SPY opened the trading day sliding about 0.5% lower, which weighed on both the general and cryptocurrency markets.

The crypto sector has been in turmoil since Nov. 10, 2021 when Ethereum and Bitcoin BTC/USD reached all-time highs of $4,867.81 and almost $69,000, respectively, but then entered into a bear cycle.

Ethereum declined 55.65% from that date to a Jan. 24 low of $2,159 where it bounced up from the level and began an uptrend on the daily chart, partly because the crypto entered into oversold conditions with its relative strength index (RSI) hitting 22%.

If Ethereum can maintain its current trend a bull cycle may be on the horizon and on Tuesday Ethereum was attempting to regain a key level as support.

See Also: Bitcoin, Ethereum, Dogecoin On The Rise — Sorry To Play Debbie Downer But Here's Why These Analysts Refuse To Sound The All-Clear Alarm

The Ethereum Chart: Ethereum rejected the 21-day exponential moving average on Tuesday morning, but when the SPY began to bounce at about 10:45 a.m. EST, Ethereum was set to take another run at regaining the level. If Ethereum is able to reestablish the level as support and hold above it for a period of time, the eight-day EMA will eventually cross above the 21-day, which would be bullish.

Ethereum’s RSI is currently measuring in at about the 44% level and trending upwards, which is also bullish. The oscillator has a lot of room to move higher before entering into overbought conditions, which means Ethereum could trade much higher in terms of price before flashing warning signs.

Tuesday’s price action caused Ethereum to print a higher high above the Jan. 29 high of $2,640, which confirms the crypto is still trading in an uptrend. Ethereum will eventually need to print a higher low above Monday’s low-of-day at the $2,478.31 mark, which may give bullish traders who don’t already have a position a solid entry point.

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• Bulls want to see sustained bullish volume pop Ethereum up over the 21-day EMA, which would give the crypto room to regain a support level at $2,890. Above the level there is resistance at $3,057.82 and $3,240.01.
• Bears want to see big bearish volume come in and drop the crypto down below the eight-day EMA, which could then push Ethereum down below a support level of $2,609.02. Below that area there is further support at $2,461.63 and $2,317.64.