The cryptocurrency market has been locked in a tight trading range in the last 24 hours, reflecting the uncertain sentiment currently prevailing in the global crypto landscape. This is further validated by the fear and greed index standing at a middling 51 out of 100. Yet, amidst this environment, South African cryptocurrency enthusiasts have their sights set on Ethereum (ETH) as it inches closer to a critical breakout point.
On Thursday, market bulls were instrumental in pushing the price of Ethereum (ETH) close to ZAR 33,524 (approximately $1,900). However, since then, maintaining this positive momentum has proven to be a challenge. According to CoinMarketCap (CMC), Ethereum’s price currently stands at ZAR 32,890.64 (around $1,866), marking a 1.17% decline over the past 24 hours.
Facing Formidable Resistance
The recent break above the Relative Strength Index (RSI) ceiling of 48.00 signalled the initiation of a potential uptrend for Ethereum, the world’s second-largest cryptocurrency by market capitalisation. However, an intersect between the 10-day and 25-day moving averages (MA) indicates the persistence of a bearish sentiment.
If Ethereum fails to clear the crucial price threshold of ZAR 33,524, a sharp downtrend could be on the horizon. Ethereum seems to have initiated a temporary upward movement from the ZAR 32,693.44 level. Taking cues from Bitcoin’s recent performance, Ethereum successfully crossed the ZAR 32,598 and ZAR 32,794 marks. However, a formidable selling pressure persists just below the ZAR 33,524 level, although market bulls strive to thrust the price upwards.
The gap between the current Ethereum price and the ZAR 35,280 resistance level (equivalent to $2,000) is shrinking, indicating that a significant breakout could be imminent. The formation of a bullish inverse head-and-shoulders (H&S) pattern on the daily chart predicts a 19% surge, potentially taking the price to ZAR 42,048 (approximately $2,385). The reversal indicated by this H&S pattern suggests that an uptrend could be about to commence.
To secure its position, Ethereum’s price needs to breach and stay above the ZAR 32,965.80 barrier (around $1,870). Investors may consider locking in profits around the ZAR 35,280 mark, but those with a high-risk tolerance might want to hold out for the H&S pattern breakthrough to ZAR 42,048 before selling.
In conclusion, despite the bearish undertones currently shadowing the crypto market, Ethereum’s potential for a significant price breakout stands as a beacon of hope for South African crypto enthusiasts and investors alike.