Ethereum, Bitcoin and the cryptocurrency space have been on the mend lately.
In late-July, this group was in trouble. After slogging through a painful bear market, the crypto space was teetering on the brink of a larger breakdown.
For Bitcoin, that came around the $30,000 area. For Ethereum, it was around $1,700 to $1,750.
However, commentary from The B Word conference - which featured Tesla’s (TSLA) - Get Tesla Inc Report Elon Musk, ARK’s Cathie Wood and Square (SQ) - Get Square, Inc. Class A Report and Twitter’s (TWTR) - Get Twitter, Inc. Report Jack Dorsey - was able to elevate the group.
While many observers believed it was just a temporary bounce, it has fueled a surprising run so far.
For instance, Ethereum has been able to rally in 12 of the 13 sessions leading up to Tuesday’s 3.8% dip. With Wednesday’s 6.5% rebound though, bulls are looking good as key support holds.
Now up more than 57% from the recent low, what do we make of Ethereum?
After such a powerful run, Ethereum is giving bulls a nice dip down to the 10-day moving average.
This short-term moving average should act as support and it’s clearly doing just that. today. At Wednesday low, Ethereum tagged the 10-day and is bouncing hard, just missing Tuesday’s low by a few dollars.
Now powering through the prior day’s high, bulls are looking at a daily-up rotation if Ethereum can close over $2,630.
The cryptocurrency is currently trading into recent resistance near $2,700, but a push through this level could put $2,900 resistance in play. A move north of $3,000 is possible should it clear $2,900 resistance.
Should Ethereum reclaim $3,000, keep an eye on the $3,200 area, which was support in May before failing later in the month.
If the current bounce is short-lived and the 10-day moving average doesn’t hold as support, keep an eye on the $2,200 to $2,250 area. There the stock finds its 21-day, 50-day and 200-day moving averages, which should act as support.
Companies that have crypto exposure have been trading pretty well lately and although cryptocurrencies are notably higher over the past few weeks, let’s see how aggressive bulls are on the current dip.
If they’re really aggressive, we could see another impressive move to the upside.