- Ethereum trades at a five-month high
- It has climbed above a key support level
- Momentum indicators remain bullish
Ethereum continues to rally, undeterred by the broader fragile market sentiment due to geopolitics and Trump’s second term, and thus playing catch-up with bitcoin. November could be the first month that ethereum outperforms the king of cryptos since May. Ethereum has managed to quickly climb above a key level, reaching a five-month high. With the markets preparing for customary Santa Claus rally, cryptocurrencies could get another boost and thus keep the current short-term bullish trend intact.
Meanwhile, the momentum indicators remain bullish. The RSI is trading sideways, a tad below its 70 threshold, and thus pointing to a strong bullish pressure in ethereum. Interestingly, the stochastic oscillator is hovering inside its overbought area (OB), and failing, up to now, to stage a good move below both its OB and moving average. Should the stochastic oscillator achieve a breakout, it would be seen as a strong bearish signal.
Should the bulls remain confident, they would try to keep ethereum above both the 23.6% Fibonacci retracement level of the October 13, 2023 – March 12, 2024 uptrend at 3,490, and the April 4, 2022 high at 3,582. They could then gradually push it towards the May 27, 2024 high at 3,974 and, if successful, prepare for a retest of the March 2024 all-time high at 4,098.
On the other hand, the bears will try to regain the upper hand and initially push ethereum below the 3,490 level. They could then stage a selloff towards the 38.2% Fibonacci retracement level at 3,115, with the path lower becoming more treacherous as the 50- and 100-day simple moving averages (SMAs) are positioning a tad below the 3,000 level.
To conclude, contrary to bitcoin’s recent correction and despite the broader mixed market sentiment, ethereum is performing well, reaching a five-month high.
