Signals Suggest Ethereum Could Make Breakthrough Above $3,085


Ethereum has fallen again along with the market. After struggling to cross $3,100, the digital asset had taken another beating causing it to crash below $3,000 again. However, this does not indicate more downward trends. In fact, indicators are pointing to Ethereum’s uptrend despite its recent trend, one that would see it test another key resistance point.

Ethereum Crossing $3,000?

It’s no secret that Ethereum has largely hovered around $3,000. This price mark is important to the asset hence the reason why bulls continue to fight hard to keep it. And while sentiment remains positive, the cryptocurrency is poised to become one of the biggest winners of the upcoming rally. Because of this, it will test a key resistance point before continuing its upward trajectory.

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While sell signals continue to dominate purchases for the digital asset, other aspects are showing growing bullish sentiment. A look at the 20 Day Moving Average shows that Ethereum is currently trading above it. This is one of the signals showing how investors view a digital asset over the long term and with ETH trading above this point, it shows that users are willing to buy it at a higher price than in recent weeks.

ETH crumbles to $2,800 | Source: ETHUSD on TradingView.com

For an asset like ETH, this could mean a turnaround for the cryptocurrency. After it settles above the initial support level of $2,780, $3,085 is of course the next resistance point to test. Once broken, ETH could very well ride it up to a new test at $3,400, a more problematic bump to cross.

ETH holders thrown into profit

More Ethereum holders are still making profits despite the recent downtrend. It has proven to be one of the more resilient assets with a strong shareholder base that weathers the worst and this is paying off for investors. Currently, Ethereum is one of the cryptocurrencies with the highest win rate for investors, although it has lost almost 40% of its all-time high.

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A total of 72% of Ethereum holders continue to profit even below $3,000† These holders, the majority of whom have been holding their tokens for over a year, are more bullish, “diamond hands” that are less likely to sell even in a downtrend.

On-chain and exchange signals tend to be bullish. However, with the price firmly below the 50-day moving average, this signals increased long-term selling sentiment, indicating that an uptrend from this point is likely to be short-lived.

Featured image from GreekReporter.com, chart from TradingView.com

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