There may still be hope for Ethereum to break out above $ 2,000, even as it rises to trade above $ 1,500, after falling to around $ 1,455 during the previous session. At the time of writing, ETH was trading at around $ 1,575.
The next key level of interest to keep an eye out for will be the 50-SMA, at around 1,517 on the 4-hourly chart. Technical indicators point to the possibility of more interest in buying, which could propel prices further up in the near term.
Fundamentals are also supporting the bullish bias for now, on the back of news reports announcing the availability of Ethereum on the Amazon Managed Blockchain after its preview back in December. The announcement comes more than two years after the idea was first broached, and it will give Amazon Web Services users the ability to provision Ethereum nodes.
Currently, the Ethereum network has more than 8,000 nodes that are used for driving consensus, verifying transactions, and offering greater security from possible attacks by malicious actors. The AWS support for Ethereum can help increase this number, which could make the overall network healthier and drive higher adoption rates, raising the value of ETH in the process.
ETH/USD, A Technical Outlook – Violation of Descending Triangle to Drive Buying
On the technical side, the bullish momentum in the ETH/USD pair seems set to continue, primarily due to the breakout at the $ 1,590 level. The ETH/USD pair managed to extend its bullish rally, rising above the $1,590 resistance level, and tested the $ 1,600 zone. The Ethereum price came close to $ 1,596, before starting a downside correction. Taking a look at the highlights on the daily chart, the resistance was brought about by the 50 Simple Moving Averages (SMA) at the $ 1,600 level. If buyers overcome this barrier, the journey towards $ 1,710 will become possible.
On the other hand, the bulls need to focus on stepping above the $ 1,600 resistance area, as the RSI and MACD suggest solid bullish momentum, whereas the breakout at $ 1,600 is expected to cover the way for gains eying the $ 2,000 mark.
The bullish outlook has been confirmed by the Relative Strength Index (RSI), as the indicator gradually approaches the midline of 50. An additional move towards the overbought area will encourage the buyers to take control. Overall, Ethereum is trading within the narrow range of a descending triangle pattern, extending support at around $ 1,300 and resistance at $ 1,559. However, on the four-hourly timeframes, the descending triangle pattern seems to have been violated, underpinning the demand for Ethereum, which is the second most traded cryptocurrency.
The support of the pattern played a crucial role in stopping the potential losses at $ 1,300 earlier this week. Besides this, the bulls are likely to take advantage of a triangle breakout and lead the Ethereum prices towards $ 2,000 pretty soon. However, it is essential that the ETH/USD pair should cross over the 50 EMA resistance area, above $ 1,559.
Good luck, and stay tuned to FXLeaders for more forex and crypto trading signals!