ETH rolls toward $2,000 as resistance weakens
- Ethereum is on the way to breaking above $1,800 and the descending parallel channel.
- The IOMAP illustrates shrinking resistance, thus validating the expected upswing to $2,000.
- Recovery to be delayed or prevented if the four-hour 100 SMA resistance remains intact.
Ethereum has lifted from the recently established support at $1,540. Several seller congestion zones have flipped into support levels, including $1,600, the four-hour 200 Simple Moving Average (SMA), the 50 SMA, and $1,700. At the time of writing, Ether is dancing around $1,750 amid a push for gains toward $2,000.
Ethereum bulls nurture the ultimate uptrend
Ether is battling the resistance at the 100 Simple Moving Average (SMA). Trading above this level will see the ETH price make a real break above the descending parallel channel. If massive buy orders are triggered due to the growing level of speculation, the pioneer smart contract token will complete the bullish leg to $2,000.
ETH/USD four-hour chart
The Moving Average Convergence Divergence (MACD) indicator’s return to the positive region on the 4-hour chart implies that buyers are gaining traction. Besides, the MACD line (blue) cross above the signal line is a bullish signal.
At the same time, it is essential to realize the shrinking resistance ahead for ETH. The IOMAP model shows that the slightest resistance path is upward. The on-chain metric directs our attention to the region between $1,745 and $1,782, the most immediate and important resistance level. Here, nearly 624,400 addresses previously bought around 2.9 million ETH. If bulls are able to break this level, Ethereum should have a smoother path to higher levels.
On the other hand, Ethereum is sitting on top of an area with immense support. The buyer congestion zone runs from $1,691 to $1,743. Here, roughly 716,000 addresses had previously purchased approximately 12 million ETH.
Ethereum IOMAP model
Looking at the other side of the fence
The resistance at the four-hour 100 SMA must come down to allow gains to $2,000. Moreover, ETH must make a real break above the ascending channel to cement the bulls’ presence in the market. Support at $1,700 must also hold to avoid losses toward the primary support at $1,540. We must keep in mind that Ethereum is not out of the woods as long at it trades under $1,800.