Ethereum (ETH) ended its multi-month downtrend when it rallied 13% from the June 19 opening at $1,720, breaking above the $1,800 psychological level to set a swing high at $1,889 on Thursday. The recovery has inspired positive sentiments among crypto investors, with Bitcoin (BTC) finally returning to $30,000.
The sudden surge in crypto prices has been attributed to news of spot Bitcoin ETF filings by large financial institutions like Wisdom Tree and Blackrock.
Ethereum price gains momentum as $2,000 Remains Elusive
Ethereum price is up 16% from June 15 lows around $1,617 and 12.95% over the last week, according to data from TradingView and CoinMarketCap. The rising momentum comes amid institutional investors showing a growing interest in and recognition of cryptocurrencies.
Moreover, the subsequent filings by two of the biggest institutional investors underscore the increasing recognition of the potential of cryptocurrencies in traditional finance (TradFi). With these applications, it is evident that the industry needs regulated investment vehicles that could clear the path for broader adoption of cryptocurrencies.
After crossing the $1,800 mark, ETH bulls are aiming for the $2,000 psychological level, a reach that could see the largest altcoin by market capitalization reclaim the mid-April highs at $2,150, embraced by the tip of the descending parallel channel. A decisive candlestick close above the $2,150 level could clear the path for a 32% rally to analysts’ ambitious target of $2,500.
ETH/USD Daily Chart
Supporting this positive outlook is the Relative Strength Index (RSI) which is pointing north and its position at 59 in the positive region shows a rising momentum amongst buyers. Similarly, the crypto’s escape from the bearish channel suggests strength amongst buyers to sustain the higher levels.
Notably, even as Bitcoin shattered the $30,000 mark during the recent rally, ETH failed to tag the key $2,000 level. This shows that the bears are aggressively defending this supply zone. The chart above shows that Etherum price has been stuck below this level since August last year, except for the few days it traded above it in April.
Failure for the bulls to push the price above this level would indicate their inability to sustain the higher highs. Overhead pressure from the same zone could cause the price of the proof-of-stake (PoS) token to turn down from the current level dropping below the 100-day Simple Moving Average (SMA) at $1,844 and the 50-day SMA at $1,822 before plunging back into the channel.
Traders could expect the Ethereum price to continue oscillating within the governing chart pattern for a few days with the middle and lower boundaries at $1,680 and $1,534 providing support.
