Ethereum has finally caught momentum for gains above $2,000. Since last week, the bulls had been trying to settle above $1,800. However, the journey to $2,000 became apparent as soon as Ethereum closed the day above this level.
At the time of writing, Ether has lifted above $1,900 for the first time and is exchanging hands at $1,905. The technical picture has flipped massively bullish, as reinforced by the Moving Average Convergence Divergence (MACD).
Initially, the MACD held above the midline, which allowed bulls to embrace support at $1,650 and effect a reversal. The 50 Simple Moving Average (SMA) played a vital role in ensuring the recovery remained intact.
For now, the path with the least resistance is upwards, as validated by the MACD line (blue) crossing above the signal line. As for the bulls, closing the day above $1,900 means that their focus stays on $2,000. Action to and beyond $2,000 might trigger massive buy orders due to the fear of missing out (FOMO), whereby Ethereum could rally quickly to $3,000.
ETH/USD 4-hour chart
It is worth keeping in mind that the bullish narrative will fail to occur if ETH fails to hold above $1,900. A correction toward $1,800 will risk the gains made this week. Support at the 50 SMA will absorb the selling pressure, but losses could extend as far as $1,700, as highlighted by the 100 SMA.
Ethereum intraday levels
Spot rate: $1,905
Relative change: 50
Percentage change: 2.7%
Trend: Bullish
Volatility: high
