Ethereum's Explosive Surge Sets Sights on $1.2 Trillion Crypto Market Cap

Ethereum's Explosive Surge Sets Sights on $1.2 Trillion Crypto Market Cap

Over the past couple of days, Ethereum, the second largest cryptocurrency, has displayed a strong performance, swiftly recovering from the crucial support level at $1800. Evidently, buyers have effectively turned this range into a demand zone, which holds the potential to counteract additional selling pressure.

Based on information from CoinMarketCap, the cryptocurrency market cap has experienced a 1.3% surge by Wednesday evening, reaching a total of $1.19 trillion. Concurrently, the price of Ethereum (ETH) is maintaining a relatively stable sideways movement at $1860, accompanied by a modest gain of 1.1%.

Source: Tradingview 

In the recent night, an impressive surge in trading volume led the bulls to break Ethereum's price free from a descending wedge pattern that had persisted for the past three weeks. 

Although the $1800 level has transformed into a crucial support zone, it's worth noting that bears could potentially challenge this rebound around the $1880 resistance area, considering that the ETH price had previously undergone a retest within this range.

Should buyers manage to surpass the immediate obstacle at $1880, a clear path would be paved for a bullish rally in ETH, aiming for the significant milestone of $2000. This notable surge in buying pressure came on the heels of the observation of a long-awaited doji candle on the 7th of August.

Source: Tradingview 

Since the beginning of January, buyers have consistently displayed heightened aggression when approaching the 200-day simple moving average (red line). Notably, this trend has once again manifested recently, resulting in a positive turn for ETH's price in close proximity to this particular zone. It's worth noting that a dip beneath this 200-SMA level could potentially expose the bulls to a challenging scenario.

Presently, the bulls are making efforts to cultivate a positive sentiment, aiming for further accumulation of assets by maintaining the asset price above the 100-day SMA. 

When examining the technical indicators, such as the Relative Strength Index (RSI) and Stochastic RSI, Ethereum appears to be positioned as a prospective asset for growth. However, it's important to highlight that while the RSI remains below the 50-range, the Stoch RSI is showing a consistent upward movement, approaching the overbought zone.

Also Read: Ethereum's Price Battle: Can $1800 Support Weather the Bearish Storm?

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This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.