Ethereum (ETH) has continued to report modest gains as it steadies up the price action over the last few days. The coin is now approaching a very crucial resistance, and there is a real chance it will reclaim it. What does this mean? Well, here are some pointers:
Ethereum (ETH) has now surged to a weekly high and is expected to continue.
The coin is getting closer to its 50-day EMA of $2820.
At press time, ETH was trading at $2810, up about 4% for the day.
Data Source: Tradingview
Ethereum (ETH) – Why $3200 is happening
The $2820 support is crucial for one main reason. If ETH reclaims it, it will be the first time in a few weeks it has surged above its 50-day exponential moving average or EMA. This often indicates a bullish trend is starting to form.
Also, the last time Ethereum rallied from this zone, it went on to hit $3600. The coin has also hit weekly highs, and as sentiment in the market improves, it's only a matter of time before it tests $3200.
The most important thing now will be for bulls to hold $2820. If they can do this at the end of the week, then we will be in bullish territory for ETH. But a failure to do so will send the coin to the next support of $2600.
Is Ethereum Struggling?
A lot of things have been happening in the Ethereum ecosystem. There is a big shift towards Ethereum 2.0, which will usher in a proof of stake model. But market volatility has hampered growth for the coin.
This will remain the case for the near term. But we believe that ETH will find sufficient demand in the long term and could still end the year at $10,000. But so many downside risks still pose major challenges.