Let us check the crypto market. $800 ETH is coming back in play. Thus, the price of Ethereum shows similarities with previous bull cycle beginnings.
Markets are behaving in massive cycles. One cycle is the previous BTC (Bitcoin) price cycle from 2014 to 2017. Nevertheless, those cycles are multiple smaller cycles that can often repeat.
A similar analysis and approach can be made for ETH (Ethereum’s Ether). It is outperforming Bitcoin year-to-date. The reason is that upward impulse moves have corrected heavily to retest previous resistance levels.
Earlier in the year, the weekly chart shows a clear breakout above the 1000-week 200-week Mas (moving averages). Also, a getaway caused the price to break above the crucial resistance level of three hundred dollars.
For two years, the three hundred dollars barrier has been a resistance zone. It is that way ever since the bear market for Ethereum started in February 2018.
The price of Ether has been hovering between eighty dollars and three hundred dollars since the accumulatio period. ETH/USD broke above three hundred dollars after almost two years. It rallies toward the next resistance zone around five hundred dollars.
Crypto markets still appear to be consolidating within a new cycle. Thus, a breakout during this run is unlikely. This buildup does not provide massive volatility and is relatively dull.
The incentive to continually back-test every previous resistance zone as support is another clear signal of this accumulation period.
The chart is showing that a higher high is already established regarding the current trend. After that, the market looks for a clearcut higher low to confirm the existing trend switch.
The main question is that at which level can a higher low established? The answer is the previous resistance at three hundred dollars becoming support.
The 200-week moving averages at $220-245 can confirm and sustain the higher low even if the $300 level does not support. Investors must watch those two zones to see whether buyers step in. They are increasing the likelihood of Ether holding above that level, the three hundred level already held as support.
The markets usually tend to move in substantial cycles. Usually, the impulse move lasts the shortest. It is because corrective and accumulative movements take the most prolonged period.
We can find the next levels of potential resistance. It is thanks to tools and indicators at $600 and $775-825.
It means that Ethereum might surge more than a hundred percent in the next impulse move.
That is an analysis of the crypto market.
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