- Cryptocurrencies benefit from Trump’s win
- Ethereum finds resistance at the 200-day SMA
- Momentum indicators confirm the bullish pressure
Ethereum has been benefiting from the outcome of the US presidential election by recording strong gains and returning above the 2,810 area for the first time since early August. It managed to overcome some key levels on its way higher, including the key May 27, 2024 descending trendline, with the rally pausing at the 200-day simple moving average (SMA). Contrary to bitcoin’s explosive rally in 2024, ethereum has yet to return to its March 2024 levels.
Meanwhile, the momentum indicators are bullish. The RSI has been climbing aggressively higher, thus confirming the strong bullish pressure in ethereum. Interestingly, the stochastic oscillator has returned to its overbought (OB) area and still maintains a good gap from its moving average. The stochastic oscillator could hover for a while in its OB region before signalling its readiness for a move lower, which would be a bearish signal.
Should the bulls remain confident, they would try to keep ethereum above the 50% Fibonacci retracement level of the October 13, 2023 – March 12, 2024 uptrend at 2,811, and then retest the resistance set by the 200-day SMA. If successful, the door would then be open for a move towards the 38.2% Fibonacci retracement level of 3,115, provided the bulls overcome the 3,000 level first.
On the other hand, the bears will try to regain the upper hand. A move below 2,811 could be the initial step for a more protracted move lower. Should they manage to push ethereum below the key May 27, 2024 trendline, the path could then be clear for a selloff towards the 2,500 area.
To conclude, ethereum has benefited from this week’s key events but it is now facing a key resistance level.
. Contrary to bitcoin’s explosive rally in 2024, ethereum has yet to return to its March 2024 levels.){kind=link}