Ethereum (ETH) – Could see further bullish developments in the short-termPosted on Thursday, December 1 2022 at 8:26 pm GMT+0000
Ethereum (ETH) rebounded from the vicinity of the early November low of 1,073 last week, and has been since edging higher inside an ascending channel. The second-largest cryptocurrency surged above exponential moving averages to confront the 38.2% Fibonacci retracement level of last month’s freefall.
The recent positive intersection of the 20- and 55-period exponential moving averages is promoting further advances in the coming sessions. The technical indicators back this narrative too, as the KST is strengthening above its signal and zero lines, and the +DI and -DI lines of the ADX indicator are diverging and positively aligned, with the indicator itself rising above 25, confirming a strong bullish bias in the short-term window.
Thus, if Ethereum manages to attract additional buying traction and with certainty step over the 38.2% Fibonacci retracement level at 1,304 then the return line of channel, it will instantly climb to the 50% Fibonacci level at 1,375. Further higher, the spotlight will turn to the key 61.8% Fibonacci level at 1,446.
On the other side, should the recently challenged resistance barrier prove tough to overcome, the price could drop toward the 1,248 – 1,221 support region, linking the November 26th inside high and the exponential moving averages. Any significant penetration at this point will see an immediate test of the lower bar of the channel. Failure to bounce here, and a clear extension below Monday intraday bottom of 1,150 will dismantle the short-term positive structure. In such a case, the price will tumble to meet the critical 1,703 trough.
To conclude, Ethereum is currently exhibiting a bullish appetite for the coming sessions, and the current rally is expected to see further continuation following a jump above 1,304.