Ethereum Price Shows Signs of Bullish Reversal; How High Can ETH Go?

• Ethereum recently faced rejection at Fibonacci (Fib) resistance but bounced at a critical Fib support level, signaling a potential bullish reversal.
• In January, Ethereum’s price dropped around 23% amidst overall crypto market weakness.
• The MACD histogram shows upward momentum.

Ethereum recently faced rejection at Fibonacci (Fib) resistance and trended downward. However, its price has now bounced at a critical Fib support level, signaling that the coin may turn bullish again soon. This rebound suggests investors might resume purchases, potentially lifting ETH out of its post-resistance decline.

Bear Cycle weighs on ETH in January

Last month, Ethereum’s price fell roughly 23% amid broader crypto market weakness. However, indicators now point to improving conditions that could reverse ETH’s fortunes in February.

For example, the monthly Moving Average Convergence Divergence (MACD) histogram sustains an upward trajectory. The MACD lines also remain crossed bullishly. Meanwhile, the neutral Relative Strength Index doesn’t indicate overbought or oversold levels, allowing room for prices to keep rising or falling.

The bullish MACD crossover coupled with an RSI not yet in overbought territory suggests Ethereum exited oversold conditions and could rebound after January’s bearish period.

Golden Support Level Stabilizes Decline

Two weeks ago, ETH plunged sharply, nearing horizontal support around $2,160 before closing back above the 0.382 Fib level at approximately $2,255. Since then, Ethereum has shown bullish momentum from this golden ratio support zone despite facing rejection at $2,550 resistance a few weeks ago.

However, the weekly MACD histogram has trended down for a month now. This hints that the MACD lines may soon cross bearishly, pointing to potential losses ahead if ETH breaks below support at $2,255 and $2,140. In that event, the next key level sits around $1,950 alongside the 50-week Exponential Moving Average.

EMA Cross Suggests Continued Daily Upside

On the daily chart, Ethereum maintains a bullish golden crossover between its exponential moving averages. Furthermore, the upward-sloping MACD histogram indicates the MACD lines could cross bullishly soon.

Alongside the neutral daily Relative Strength Index, these signs collectively point to a generally constructive ETH outlook in coming days and weeks. While uncertainty persists, technicals hint that Ethereum may capitalize on its regained support and extend its uptrend if bulls keep buying dips.