Ethereum Showing Resilience, Bouncing Off the 50 SMA
Cryptocurrencies have been surging in the last several months and it doesn’t seem like this surge is ending any time soon. Bitcoin got pretty close to the big level at $ 50,000 yesterday, although it retreated $ 4,000 lower but it still remains bullish.
It’s not only BITCOIN which is extremely bullish, all digital currencies have been surging and they are holding on to the gains. In fact, they are making new highs every week. ETHEREUM has been at the forefront of this bullish move in cryptos in recent weeks, after having broken the January 2018 high last month, exactly 2 years after the first one, as we explain in our Ethereum forecast for 2021.
But, this time the surge wasn’t followed by a bearish crash like the one we saw in February 2018. Buyers are still in charge and they are making new highs. Yesterday we saw a retreat after Saturday’s new record highs, but the 50 SMA (yellow) held as support on the H4 chart and today the price is bouncing back up.
This indicates strong buying pressure, with buyers jumping in at the first opportunity they get after a small pullback lower. We missed the opportunity yesterday, but will look for another retrace lower so we can join the bullish crowd too.