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The price of Ethereum (ETH), the leading market altcoin, has reclaimed the psychological level of $1,800. This price recovery follows recent enthusiastic sentiment on the broader crypto market. As a result, ETH investors and analysts are now questioning whether the sell-off trends are over.
ETH regains stability
Recent data from CoinMarketCap shows Ethereum has jumped from its $1,500 lows to $1,800. This sharp rise appears to be a bullish rally, signaling the end of the latest Ethereum sell-off trends. Within the past seven days, the price of ETH has increased by over 10.6%.
Arman ShirinyanEthereum recently experienced one of the biggest daily volume spikes in recent memory, and the price has breached key resistance levels. Typically, such movements excite traders and suggest a breakout or trend reversal.
ETH traded at $1,805 at press time, down slightly by 0.25% in the past 24 hours. The daily trading volume increased by 6.69%, indicating renewed investor interest.
Is Ethereum sell-off pressure over?
While market observers expect a more bullish rally, Ethereum still faces technical challenges. First, the price of ETH has consistently faced rejection between $1,850 and $1,900. The altcoin faces selling pressure with each attempt to overcome this level.
Ethereum is also trapped below important averages like the 20, and 50-week Simple Moving Averages (SMAs). The current price of $1,805 is well below both the 50-week SMA, which is $2,850, and the 20-week SMA, which is $2,560.
Historically, price drops below these averages continue the bearish trend, making any sustained upward move much more difficult. Therefore, ETH could remain stuck at the current level or even drop further, but without drastic changes.
However, Ethereum’s breakout above $1,800 represents a major change in the asset's chart structure rather than merely a bounce. This breakout, accompanied by increased volume, shows that bulls are acting decisively.
Vladislav Sopov
Dan Burgin