After the crypto market went back a week, it seems that the uptrend is resuming in the medium term. Ethereum (ETH) for example is still starting higher, but the behavior points to it could soon be marking a new annual high, mainly driven by the strong boom in decentralized finance.
With the setback that was being experienced, the DeFi went through their first big fall, however it seems that this has ended, and they have resumed the previous uptrend with a lot of positivism.
The vast majority of decentralized applications run on the Ethereum network, so they will undoubtedly be a major catalyst for the upside we expect.
The recent launch of the Uniswap token is being regarded by many as one of those catalysts that have been driving the price of ETH.
But to get a panoramic view of the current situation, it is useful to go to the charts of its price in different time frames.
Ethereum technical analysis as it resumes its upward trend
In the weekly chart we observe a clear medium-term uptrend, product of increasingly higher lows and highs, supported by the moving averages EMA of 8 and SMA of 18 weeks that have functioned as dynamic supports.
Before starting to pull back, Ethereum visited the immediate weekly resistance, located at $ 486.5. Now it appears that the pullback in search of demand has ended, so a new momentum to the upside may be starting.
Now the goal will be to break through that resistance at $ 486.55, which will leave the ground clear to $ 619.66.
Short term trend
In the daily time frame we are also observing a positive behavior of ETH, product of continuous breaks of resistance.
Today the price is facing a resistance zone around $ 386. This is the most important level to go through in the next few hours, as it will be a clean confirmation that the bulls are in full control.
The 8 EMA and 18-day SMA moving averages are crossing to the upside, following the positive behavior of Ethereum over the past few days.
When analyzing the chart with 4-hour candles, we clearly notice how the price has remained locked in a range with resistance at $ 389 and support at $ 355.
At the moment we are seeing a clear succession of increasingly higher lows and highs in this time frame, despite the fact that there is a greater range that encloses them.
This succession is followed by the moving averages EMA of 8 and SMA of 18 which in turn are functioning as dynamic supports.
The 200-period moving average worked as resistance a few hours ago, but the behavior suggests that it will be crossed very soon, leaving the ground free for the bulls to generate significant gains in the short term.
And what do you think? Do you agree that Ethereum is starting an important upward momentum? Let us know your opinion in the comments!
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