Here’s How Ethereum Could break above $2,000
Ethereum (ETH) has experienced another tremendous rally of about 130% since its June low. Still, in the short term, the price action indicates the $2,000 psychological level to be a solid resistance to overcome. Here are three things that need to happen so that ETH's price has a higher chance of breaking above $2,000.
#1 RSI Needs to Stay Above 50
The Relative Strength Index (RSI) for Ethereum needs to continue printing readings above the 50 mid-level. This will signal that there is positive momentum behind the current rally.
#2 Golden Crossover Signal Needs to Materialize
A golden crossover between the 100-day and 50-day Simple Moving Averages (SMA) is a significant bullish signal.
The two moving averages are very close to one another, and the signal can happen anytime in the coming days.
A golden crossover can happen not only when the 50-day SMA crosses above the 200-day SMA but also when there is a bull cross of the 50-day and 100-day moving averages.
By using the second combination of moving averages, we get the golden crossover signal much earlier.
#3 Pullbacks Need to Stay Above $1,500
Any pullback in price needs to fail above $1,500. Otherwise, we may end up breaking below the 100-day and 50-day Simple Moving Averages and below crucial support levels.
A break below $1,500 will diminish the probability of a continuation beyond $2,000.
Bottom line: For Ethereum's rally to continue to $2,000 and beyond, the RSI needs to stay above the mid-level 50, the 50 SMA needs to cross over above the 100 SMA daily chart, and finally, any pullback needs to remain above $1,500.
Incoming Ethereum merge
Ethereum is about to undergo a major change that could see it break above $2,000. The merge, which is scheduled to happen in the next few weeks, will see Ethereum move from a proof-of-work to a proof-of-stake system.
This will make Ethereum more secure and efficient. It will also reduce the amount of power needed to run the network. This is good news for Ethereum investors as it could lead to a big price increase.
