Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Ethereum [ETH] recorded gains of 2.8% in the past 24 hours to boost bullish momentum and chances of a breakout past the $1,924 resistance level.
With Bitcoin [BTC] reclaiming the $27k price zone, ETH bulls will be looking to continue their upward march toward the $2,000 psychological price zone.
Can bulls flip the $1,924 resistance level on the third attempt?
Ethereum’s price action over the past month confined it to a range, oscillating between the $1,774 support and $1,924 resistance. The resistance level at $1,924 was tested twice on 7 May and 29 May respectively, with bears forcing a pullback in both instances.
However, the growing bullish momentum might see the resistance level break soon.
The market trajectory for ETH on the higher timeframes was upward and this could spur buyers in the short term. A strong bullish candle close above the range high of $1,924 could signal an extension of the bullish momentum with the $2,000 psychological price zone firmly in sight.
Alternatively, ETH could continue its sideways structure with another rejection at the range high, especially if Bitcoin experiences a pullback to the $26k price zone.
Meanwhile, the Relative Strength Indicator (RSI) crossed above the neutral 50 mark and stood at 59, reiterating the recent buying pressure. This was also reflected in the On Balance Volume (OBV) which recorded a decent uptick in volume.
Steadily rising mean coin age hinted at bullish activity
A look at on-chain data from Santiment hinted at growing support for ETH’s upward movement. The 90d mean coin age has been on a steady ascent since 28 April. This highlighted the decreased movement between addresses, slowing down the selling pressure.
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The supply on exchanges also recorded a steep dip during the same period. This indicated a decline in short-term bearish pressure, providing the opportunity for buyers to advance the bullish momentum.