Cryptocurrencies are enjoying another strong day, up sharply on Monday. Ethereum is up 5% on the day and Bitcoin is just behind it.
The bulls have been doing well with this one. Ethereum is up in 10 of the past 13 days and has rallied more than 35% from last month’s low.
While the cryptocurrency isn’t completely out of the woods quite yet, it’s looking pretty good.
Last week, Bitcoin popped back over $50,000 and brought with it a new wave of momentum.
Now hitting multi-month highs, Bitcoin could be on its way back to all-time highs. Should Bitcoin get a big enough boost to return to its highs, it’s more than possible for Ethereum to do the same thing.
Ethereum took a hit in late September on news that China would ban crypto trading, but largely, it’s held up pretty well.
Let’s look at the charts.
On Friday, Ethereum rallied up to $3,675 and was rejected from this mark.
From the chart above, you’ll recognize this rejection came from the highs in the second half of September, right at the high from the top of the “B Leg” on that “ABC” correction.
It was rejected from this level and technically speaking, leaves Ethereum vulnerable.
That said, the 10-day moving average acted as support, while the 50-day moving average is just below Monday’s low.
Pushing higher now, Ethereum bulls will want to see the cryptocurrency take out the $3,675 level.
Above that mark opens the door to the 78.6% retracement up near $3,800, followed by the September high near $4,000.
Should Ethereum clear the $4,000 mark, that’s where the fun will start. It opens the door up to the all-time high at $4,380, with a breakout in play should it clear this level.
On the downside, keep an eye on the 10-day and 50-day moving averages. A break below these measures has the potential to put the $2,900 to $3,000 area on the table.
That’s followed by the 200-day moving average and the $2,750 to $2,800 area. That zone is where support came into play at the bottom of the “C Leg” in the correction.
So for now, watch $3,675 on the upside and the 10-day and 50-day moving averages on the downside.