Sometimes there’s a lot to be said about nice round numbers. This might be one of those times with Ethereum holding $3,000.
The level has gained importance this month. ETHUSD bounced around $3,000 on August 9, 12 and the last three days. It’s also managed to close above $3,000 each candle on the daily chart.
Next, yesterday’s low of $2,955 is a 23.6 percent retracement to the first Fibonacci level. The 21-day exponential moving average (EMA) is also approaching from below. Will it now provide support?
Some traders may balk at the shallowness of this pullback and hope for a deeper retest. However the May-July consolidation phase may have shaken out all the bears, so current holders could be newer and more willing to hold. Combined with the successful launch of fee-burning and plans for proof-of-stake next year, ETHUSD could be entering a phase of longer-term institutional accumulation. That could result in tighter ascending price action.
Finally, looking at the 4-hour chart below, we can see that stochastics earlier today reached their most oversold condition since prices were below $1,800 on July 19.
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Now this analysis is one of the best and most logical ones I read in the las couple of weeks. The bears were constantly charting short..short..short! I salute you