The price of Ethereum has shown tremendous strength after the successful launch of the “London” upgrade earlier this month.
One significant development in this upgrade is that ETH is now burned from every transaction, bringing Ethereum closer to a deflationary asset.
At the time of writing this article, over 73,300 ETH has been burned since the update began.
Investors have taken a bullish stance since the upgrade happened, as Ethereum has been in a strong uptrend.
If Bitcoin stays flat, Ethereum will likely hit $3,500 soon.
Looking at the last 10 trading days, it can be seen how Ethereum formed an ascending channel.
The bulls were consolidating and gathering below the near 9-month trend line that held the price of Ethereum until mid-June.
Currently, Ethereum should regain this trend to experience a bigger rally.
In addition to this trend, there is a major resistance area from $3,135 to $3,323.
Bulls must pass through these two signs in order for Ethereum to have a paved path to their designated targets.
In the event that Ethereum exceeds these signs, the price could rise to $3,565 and possibly $4,092.
Since the price of Ethereum broke the $2000 level, it has been supported by the 20 day EMA.
This moving average is a good measure of whether or not the price is in an uptrend.
If at any point Ethereum breaks below this moving average, we expect further decline in a possible short-term downtrend.
Besides this moving average, there is a major support area of $2,927 above which the price has held steady for almost two weeks.
In case the bears confirm more dominance and the price of Ethereum breaks below this support along with the downtrend of its channel, a rebound of Ethereum to $2616 is possible.
While looking at the Stochastic RSI, it can be seen how the strength has returned to the oversold territory.
This is a healthy scenario because it means that the price is regaining strength for a potential rally.
As long as the stochastic remains above the value of 20, a bullish breakout is possible soon.
An uptrend breakout is needed for a significant price boost to occur.
Ethereum price today:
- Price at time of publication: $3,270
- Direction: upward
- Volatility: high
- Support: $2,927
- Resistance: $3,323