Ethereum (ETH) has recovered in recent days after hitting its lowest level in months. The coin is however poised for a bigger bounce based on the momentum indicators. But it still faces significant upside resistance and downside risk. Here are some important facts:
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ETH clawed back $2,000 after facing a selloff this week
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RSI Divergence and Moving Average Convergence Divergence Show Signs of Bullish Momentum
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But ETH still remains under pressure below crucial resistance areas
Data source: Tradingview
Ethereum (ETH) – How It Will Reach $2500
At the moment, it does not appear that investors are willing to buy coins. This is a seller’s market, and there are fears that the crash we have seen this week is just the beginning. Despite this, we still believe that many coins will rebound in the short term, and ETH is one of them.
Momentum indicators in particular seem to suggest that Ethereum will rise. The RSI Divergence and the Moving Average Convergence Divergence are showing positive bullish signs. If indeed ETH is able to hold the price above $2,000, then a push towards $2,500 will be possible. However, it will not be so easy.
For starters, ETH has yet to overcome several crucial resistance areas, including its 50-day EMA of around $2,349. Additionally, the rally we saw in the broader market yesterday may be short-lived. These risks could make it more difficult to take control of ETH bulls in the short term.
Will Ethereum return to $5,000 this year?
Ethereum was expected to do quite well in 2022. Some analysts were even targeting $10,000 before the end of the year.
But based on what has happened in the market over the past few months, it now seems unlikely that the coin will reach such highs. However, a return of $5000 is very possible. But ETH will suffer from very high volatility before we get there.
