Ethereum over the last two days has recovered by 20.88% from its lows of $2598. And, as the market is beginning to shift gears, the king altcoin is looking at a much bigger growth now. Well, that can only be possible if the bullish pressure continues to build up.
All rise! But Ethereum first
Three price levels have been extremely important in the rise and fall of Ethereum and have been in play since the start of the year. The first level of resistance currently critical is at $3200. This has been tested as both resistance and support since August 2021. And it plays a vital role in understanding price action.
Since January, there have been attempts at breaching it, but Ethereum failed to do so.
This led the coin to pull back to the $2760 area, which needs to be tested as support to reach $3200. Additionally, on February 26, Ethereum closed above $2760. Interestingly, although at the moment the candle is red, the price indicators have changed their signals in favor of a rise.
The Parabolic SAR’s white dots moved underneath the candles on 26 February. Thus, indicating that an uptrend is active presently. The last time ETH was in an uptrend, the coin rallied by 34.57%. Thus, if ETH makes even half of that rise, which it already has, it would be able to breach $3200
Also, the MACD indicator supported the narrative mentioned above. The MACD is in full contact with the signal line looking to make a bullish crossover. The bearish pullback of the red bars also points in this direction.
However, beyond price indicators, Ethereum investors will have to play a major role if they wish for a rally.
As it stands, trading volumes have already increased from $20 billion in January to an average of $6 billion this month. But if ETH shows a green candle in the next 24 hours, this volume could pick up with new investors.
Furthermore, the network already has a 58.79% domination of HODLers, which is always a positive sign for a sustained rally.
