Ethereum has been recovering in recent days. After the coin reached its highest price in two years, it had started a decline. This appears to have ended after ETH found support around the $3,000 price point.
How is ETH doing?
With this, the coin made a higher high in the low term, and in the short term, a new upward trend can also be seen. We’ll cover this in a moment, but first let’s look at Ethereum’s weekly chart. Here each candle represents 7 days.
Here we see the two strongest price levels of ETH at the moment. I’m talking about the blue zone around $3,500 and the gray zone of around $2,100. These price levels have proven to be important in the past, and this is usually a harbinger of the future. If the price ever comes back here, it is good to have these zones clear in advance.
We can leave the bottom zone for what it is, because the price is currently in the middle of the blue zone. When the coin rose above this blue colossus, it initially seemed as if Ethereum had suddenly reached its all-time high, but of course that does not happen without a hitch. The currency first starts a decline, which now seems to have ended around the price of 3000 dollars.
Short-term upward trend
To see this better, let’s also take a look at the 4-hour chart. Here each candle represents 4 hours, making the price and its past price action visible in more detail. The trend of ETH is indicated by blue and orange arcs.
The blue arcs show the downward trend, while the orange arcs show that ETH is in a new upward trend. The coin is finally making higher highs and higher lows again in the long term. This is very good news as it usually indicates further upward movement.
If this continues, the currency could return to its previous high of $4,000, with perhaps a new all-time high on the horizon. Now that we are in the middle of the bull market, several coins have already risen past their all-time highs. Ethereum is not yet a member of this club, but the chances of this happening are increasing.
Still, it’s good to note that a higher high is usually followed by a higher low. That is why a question mark has been drawn in the last orange arc. The price may not necessarily come back here, but ETH will remain bullish if it falls back a bit. We just don’t want to see any more candles below this blue zone.
