Since the Chinese cryptocurrency transaction crackdown, the whole market has retraced by about 20%. Ethereum’s return above $3,000 was a sign of relief for the majority of the market.
Ethereum price action
Today, Ethereum is up 9% as the cryptocurrency breaks beyond $3000 for the second time. The coin has finally broken over the upper border of the previous trading range it had been trading in for the preceding two weeks. The range was $3150 to $2800, and Ethereum rallied off the lower limit on Wednesday, finding support around the 100-day moving average.
Since then, ETH has managed to break above the 20-day MA and break through the September falling trend line.
Looking ahead, the first line of defence is $3300. (50-day MA). The following numbers are $3350, $3500, $3600, and $3790. At $4000, there is more resistance.
The initial support, on the other hand, is at $3000. Then there’s $2890, $2770, and $2620. (200-day MA).
Popular Analyst’s on Twitter, acknowledged the bullish case for ETH. Rekt Capital said, Ethereum’s successful retest leads to a green October for the token
Reasons for the rise
There are several reasons for Ethereum’s price movement, the most important of which is the appearance of interest from short-term traders according to IntoTheBlock.
According to a chart given by crypto analytics firms, traders who have owned ETH for less than a month already have 43 percent more funds than in July, and may perhaps approach the all-time high reached by “young wallets” in May.
The number of new wallet addresses has surpassed 3.8 million, with around 20 million ETH in circulation. The average time held for the coins in these wallets is ten days, indicating that the bulk of people bought their Ethereum coins on the September 20 fall, when the price of ETH fell by 12% and dipped below $3,000. A strong support zone connects with buying power.