Ethereum (ETH) price continues to ride higher at the start of the new trading week. U.S stock index futures opened higher after a volatile week of mixed earning results from big technology companies. Investors jumped on riskier assets on improved risk appetite.
- Ethereum (ETH) price rises for a fourth straight day on Monday.
- Price surged 35% from January lows of $2,160.
- Expect more upside momentum if the price gives a decisive close above $3,400.
ETH Challenges 200 DMA at $3,540
The recent price action on the daily chart suggests that ETH could jump toward 200 DMA at $3,540. Ethereum’s native token Ether has scaled down almost 50% from the November 30 highs at $4,759.0.
The descending trend line from the mentioned level is acting as a strong barrier for the upside momentum. A decisive close above the resistance line shall seek the next upside target at the 200 DMA at $3,540.
In the past, as the price descend below the moving average, it recorded a fall of 35%. ETH record a single day biggest fall on January 21, as it plunged in a single day.
Furthermore, after the consolidation for nearly a week at the January lows of $2.160, ETH took a flight toward the psychological $3,000 level.
To support the bullish argument investors could look at the Daily Relative Strength Index (RSI), which holds at 56. A reading above 50 is a sign of underlying bullish sentiment. The 24-hour trading volume also rose nearly 29% at $13,091,072,039.
Beyond the 200 DMA milestone, ETH bulls would look up to the $4,000 horizontal resistance line.
Looking at another possibility, the formation of consecutive ‘Doji’ candlesticks indicates a constant conflict between bulls and bears. If the price breaks below the $2,950, which is the closing of the previous two days’ candles then it could invalidate the bullish thesis.
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