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Ethereum has shown impressive bullish momentum since breaking out of the bearish confluence zone at $2,739. This zone was formed by the convergence of a strong resistance level at $2,739 and a bearish trendline extending from the highs in May. The breakout from this key level marked a shift in market sentiment, and Ethereum has since been on a bullish rampage, pushing higher.
Recently, Ethereum came close to reaching the resistance level of $3,547 but fell just short. After a minor pullback to $3,086, the price found significant support, allowing the cryptocurrency to gather enough momentum to challenge the $3,547 resistance once again. A bullish order block formed below this level, which suggests that a pullback to this order block could further fuel the bullish ascent, providing a strong foundation for further price gains.
Ethereum Key Levels
- Demand Levels: $3,086, $2,739, $2,430
- Supply Levels: $3,547, $4,013, $4,867
Indicator Analysis
The pullback to the $3,086 support level coincided with a test of the support from the 9-period Moving Average (MA), which provided additional strength for the upward move. This MA has proven to be a key support level, helping Ethereum break above $3,558 during a subsequent pullback. However, the Stochastic oscillator indicates that the market is currently overbought, signaling the possibility of a short-term pullback. This pullback will likely test the bullish order block below the major resistance zone at $3,548, which could reignite the bullish momentum and drive Ethereum towards higher levels.
In conclusion, Ethereum remains on an upward trajectory, with key support levels holding firm and bullish signals from the indicators suggesting that the rally is far from over. A pullback to the order block below $3,548 could present an excellent buying opportunity for traders looking to capitalize on the next leg of this bullish trend.
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