Ethereum experienced massive increases during the previous intraday session. It started trading at $2,342 but surged following a small decline. The apex altcoin flipped several critical resistances and returned to its four-day high.
The cryptocurrency closed the session trading at $2,683 and registered gains of over 14% after a small correction. The latest surge is one of the biggest in the last three months as the asset struggled to reclaim lost levels.
The change in price trajectory caught many unaware as the derivatives saw $50 million in liquidation in the last 24 hours. Short positions made the bulk of the liquidations as they failed to anticipate the most recent surge.
Ethereum appears to undergoing a cooldown following the previous day’s trend. However, such sudden change must have a trigger.
There is no Fear of Recession
Friday started with Ethereum seeing one of its biggest drops. It started trading at $3,200 dropped and closed at $2,985 after losing the $3k support. The asset closed with losses of over 6%.
What caused the dip was the forecasted jobless claims. Most economists said it may exceed 250,000 which is the lowest since August 2023. Such figure will indicate a drop is available jobs and would mean an impending recession for the US.
The market received more clarity on the issue during the previous intraday session. The figures of jobless claims was lower than expected. The US labor market registered 233,000 jobless claims.
The realization reduced the fears of recession and restored confidence in major assets. For example, Tesla gained over 3% as S&P gained 2%. The bullish action also trickled into the crypto market as evident on Thursday.
The global cryptocurrency market cap surged by over 5%. Bitcoin also led the recovery with over 10% gain.
Ethereum Halts Uptrend
Ethereum has since halted its uptrend since the day started. It started trading at $2,683 and dropped to a low of $2,575. Although it’s trading higher as it rebounded, it is down by over 2%.
Nonetheless, the previous surge reflected on indicators and spread positivity in them. The moving average convergence divergence is seeing notable improvement.
MACD’s 12-day EMA is improving at this time. It halted its downward movement and is trending upwards. With the 26-day EMA still on a downtrend, a bullish convergence is underway.
With the impending interception of both metrics, ETH may continue seeing further price increase or consolidation until a divergence take place.
The relative strength index is also seeing notable improvement. It was previously below 30, indicating that the apex alt coin is oversold. The latest price hike shows huge improvement in buying volume.
RSI peaked at 38 but is now at 35 due to the latest price drop, indicative of the gradual increase in buying volume.
The apex altcoin halted its uptrend following strong resistance at $2,700. Based on macd’s readings, the bulls may continue the uptrend.
ETH is trading at $2,600. The current price suggests that the apex altcoin is exchanging above one of its toughest marks. The Fibonacci retracement levels suggest that the bulls may continue defend the current price.
If the current downtrend continues, Ethereum may rebound at the 78% fib level at $2,525. The fib level suggest notable demand concentration around this mark.
The bulls will look to the defend the second pivot suppor if this fib price fails. It means that ETH may lose the $2,500 support if the selling trend continues.
On the other hand, the asset will look to reclaim $2,700 in the coming days. Ether will look to continue the trend and attempt $2,800
A decisive flip may see the coin climb as high as it second pivot support.
Elendu Benedict | September 4, 2024
