ETH Struggles at $2,850: 50-Week MA Shows Strong Resistance
ETH is aiming for the critical milestone of $2,850, but is finding resistance around the 50-week simple moving average.
Over the past twenty-four hours, Ethereum futures liquidations totaled $105.07 million, according to statistics provided by Coinglass. On the other hand, the total amount of long liquidations is $74.09 million, while the total amount of short liquidations is $30.98 million.
The 50-week Simple Moving Average (SMA) was just below the resistance level of $2,850 when ETH experienced a rejection. This occurred after the cryptocurrency had risen to $2,750. Ethereum may find support near the key level of $2,530 after the rejection. This support is reinforced by the convergence of the 100-week and 200-week simple moving averages.
With a strong advance above the 50-week simple moving average and the resistance level of $2,850, Ethereum has the potential to regain the psychological level of $3,000 and test the resistance level of $3,250. This would be a positive development.
At the same time, while the Stochastic Oscillator (Stoch) is testing the overbought zone, the Relative Strength Index (RSI) is slightly above its neutral level. To strengthen the bullish momentum and push ETH beyond $2,850, it is highly likely that a weekly candle close higher than its neutral levels will occur.
When a weekly candle closes below $2,110, the thesis will be considered invalid, and the price of ETH could fall below $1,688.
