It is true that the entire cryptocurrency industry is going through a troubling time but Ethereum (ETH) seems to be showing signs of recovery.
Although ETH is facing the same market conditions it has one positive factor that is creating quite the anticipation in the market. It may be because of that very factor that the bulls are not letting ETH face a downtrend.
Bulls Aggression against the Bears
As the overall crypto market is bearish, the bears are constantly showing off their selling power. They tend to go on a selling spree for any cryptocurrency they think would rise with a strong rally.
Although the bears have attempted the same against ETH, the bulls supporting the second-largest cryptocurrency won’t go down easily.
The high anticipation level because of the implementation of the “Merge” has kept the spirits of the bulls quite high. Therefore, they are showing aggression against the selling power of the bears to defend their current positions.
Bulls Aggressively Defend 50-day SMA
Between August 22 and 23, the trading price of ETH had fallen below the $1,600 level. This meant that the trading price of ETH would soon hit the 50-day SMA, which was recognized at $1,571.
As the ETH’s value fell close to the 50-day SMA, the bulls launched their counter and literally launched a strong pushback against them.
This landed a huge blow on the bears and they had to back down, resulting in forming a significant rally in ETH’s value. The bulls were able to form a 2.44% rally, which helped push the trading price of ETH over the $1,600 mark.
The entire phenomenon could be witnessed by the long tail that the entire activity had managed to form in the candlestick pattern.
Bulls Eager to Hit and Cross 20-day EMA
Although the bulls have diverted a dangerous pull from the bears, they do not seem to be done with their rally.
The bulls seem determined as the trading volume for ETH is rising significantly. This means that the bulls will attempt another rally and push ETH over the 20-day EMA ($1,712).
However, to achieve this level and cross it, the bulls will need to build up a strong buying force and stand by it.
Journey to $2,000
If the bulls prevail against the bears at $1,712, then they will have another opportunity of showing off their buying power to the bears.
If the strong buying from the bulls manages to build up strong momentum, then the trading price of ETH may rise tremendously.
If all goes well in favor of the bulls and the implementation of the Merge keeps their spirits high, then they will succeed in pushing ETH’s price over $2,000.