Ether buyers stepped in below $1,900 on Wednesday, helping the second-largest cryptocurrency erase early losses. At press time, the native cryptocurrency of Ethereum’s blockchain was trading unchanged on the day near $1,941.
- The relative strength index on the hourly chart shows bullish divergence and scope for further upside.
- The RSI on the four-hour chart also favors a recovery rally, while the weekly chart stochastic is signaling interim oversold conditions.
- The upside signaled by short-term indicators may run into resistance near $2,040. That level is currently housing the widely-tracked 200-day simple moving average (SMA) resistance.
- A break higher would expose the make-or-break 50-day SMA hurdle lined up at $2,310.
- “We would add exposure if ether can confirm a breakout above its 50-day MA, as with bitcoin, with next resistance on the chart above $3,000,” Katie Stockton, founder, and managing partner of Fairlead Strategies, said in the weekly research note published Monday.
- Support levels to watch out for are the daily low of $1,865 followed by the June low near $1,700.
Source: Coindesk
