How long before ETH can reach the $3,600 target?

ETH has rallied on the price charts for the past few days, posting double-digit gains of 15% over the past 7 days. After the plunge, this altcoin experienced similar volatility to other major coins. At the time of writing, it costs $3,107.

Today’s price action is up significantly after weeks of consolidation. ETH broke the $3,085 support level and eventually traded around $3,200. Indicators have pointed to bullish action with the possibility of further advance to test the immediate resistance levels.

ETH up 20% thatin the last week

As Bitcoin rallies across the charts, the broader market is also finding strength. Large altcoins have also experienced increased purchasing power. In the case of ETH, buyers flocked to the market, sometimes pushing the coin into the overvalued and overbought zone as well.

Prices have again broken resistance levels thanks to increased investor interest and confidence over the past week. Sustained buying power could help ETH hit an immediate price cap of $3,400. Since the price drop in January, ETH is up 50%.

Technical analysis of the ETH price

ETH 4 hour chart | Source: TradingView

ETH is showing bullish price action on the 4-hour chart for the past week. However, in the past 24 hours, ETH is down 5%. The upcoming resistance stands at $3,391. On a break of this level, the price cap is expected around $3,609.

The technical outlook for the coin is bullish at press time, despite not performing well on the day. ETH price is trading above the 20 SMA, an indicator that buyers in the market are driving the price momentum.

The Relative Strength Index has struggled to stay above the center line for the past week as the RSI dipped below 0. At the time of writing, being close to the 60 mark means buyers are ahead of sellers in the market.

In the event that buyers remain active in the market and ETH continues to trade above the current level in the coming sessions, there are chances that the altcoin will continue to rise in price. In the event of a seller takeover, local support for ETH sits at $3,085 and then $2,839.

The possibility of ETH crashing

Key technical indicators are pointing to an uptrend, although some suggest opportunities for a reversal. On the 4-hour chart, this altcoin has formed a death cross, which is considered bearish. The 200 SMA crossed the short-term 50 SMA, since then ETH has continued to fluctuate near the current price.

The MACD has appeared as a bearish cross, with the histogram in red below the 0. This means bears are taking over and a sell-signal is possible. Consistent with the RSI sell signal, although in positive territory, the indicator was trending down at the time of writing.

ETH volume closed high in the red last session, showing that the bears dominated the previous session. In the event that ETH trades sideways in the following sessions, it could drop to the above support levels.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page