Ethereum (ETH) is up almost 10% over the past 24 hours to $1,155, close to falling below $1,000.
The world’s second largest cryptocurrency has experienced a strong rally in a short period of time, with buying activity on holiday prices in the US market.
But, can ETH sustain this rally? Or, it will be for the time being.
This year, concerns about the US economic slowdown and multiple crypto bankruptcies have hurt altcoins.
Over the past 24 hours, ETH/USD fluctuated between $1,086 and $1,165, indicating high volatility. The trading volume for the pair increased by 32 percent to a total of $15.3 billion, while the overall market capitalization fluctuated by about $132 billion.
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Ethereum (ETH) breaks the $1,000 resistance
ETH price has been slowly reversing since the last significant move of $1,000 seven days ago. After several days of stability, the ETH/USD pair continued to rise and broke the previous resistance level of $1,100.
On Tuesday, there were only short breaks throughout the day before each subsequent upward push. Overnight, the next level of resistance at $1,175 was already broken, indicating that bullish energy is currently strong and that the intermediate-term pricing mechanism may soon start to look green again.
Cryptocurrency markets were generally quiet during the weekend and July 4th was a holiday for US financial markets due to Independence Day.
ETH fell below the psychological $1,000 level on June 30th, but the bears were unable to capitalize on the pullback. This indicates that the bulls are buying in the downside.
Now, the bulls will attempt to push ETH above the 20-day exponential moving average ($1,192) and seize control. If they do, the ETH/USDT exchange rate could reach $1,280 and later the 50-day simple moving average ($1,535).
ETH total market cap at $136 billion on the daily chart | Source: TradingView.com
ETH must push above $1,700 to mark an uptrend
This level can once again act as a formidable obstacle. To mark the start of a new uptrend, bulls should drive the price above $1,700.
On-chain analytics data from Santiment indicates that the number of tokens moving to exchanges has steadily increased as ETH plummets to around $1,000.
ETH supply on exchanges is at its highest level in six months, indicating widespread token dumps. Its congestion on the exchanges also indicates that a major price recovery is unlikely.
Today’s ETH price analysis is positive as market analysts observed a significant high of $1,175 and a brief retracement level on Wednesday.
This indicates that a strong higher high and higher low have been established, and the bulls are ready for another aggressive move in the coming weeks. The next target could be the $1,250 resistance.
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Featured image from Somag News, chart from TradingView.com