Ethereum (ETH) price gains for a second straight day on Wednesday. ETH has formed some bullish technical setup anticipating a short-term upside rally toward $3,200.
- Ethereum (ETH) price trades modestly higher on Wednesday.
- Investors need to push above $2,800 with above an average volume to sustain the gains.
- Immediate upside hurdles are placed at 200 and 50-day EMAs.
The world’s second-largest digital asset has not been on the radar of the institutional inflows as Bitcoin remained their top priority. As per the CoinShares fund manager, there have been $109 million inflows. 81% of this total fund or $88.5 million has gone into Bitcoin (BTC) based funds.
On the other hand, Ethereum-based funds witnessed an outflow of $15.2 million according to the report.
As of press time, ETH/USD is trading at $2,708.38, up 2.65% for the day.
ETH anticipate upside continuation
On the daily chart, Ethereum’s (ETH) price has rallied 52% from the January lows of $2,159 to the swing highs of $3,284.75. However, ETH bulls remain unwilling to carry forward the gains as sellers return to collect the liquidity near $2,550.
The formation of ‘inverted hammer’ followed by two green candlesticks suggests bulls are ready to take another leap to test the upside filters.
With above an average volumes ETH/USD looks comfortable to test the first resistance hurdle at 50-day EMA (Exponential Moving Average) at $3,025.55 followed by the 200-EMA at $3,317.23.
Although the above-mentioned scenario looks possible for now but a reversal toward $2,500 could invalidate the bullish theory.
On the downside, the ETH price could retest the January lows of $2,159.0.
Technical indicators:
RSI: The Daily Relative Strength Index (RSI) still hovers below the mid-line while reading at 41.
MACD: The Moving Average Convergence Divergence (MACD) held below the midline with a neutral bias.
Conclusion: Momentum oscillators paint a mixed picture. The price must produce a daily candlestick close above $2,800 to sustain the upside gains.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/101816-2/