The cryptocurrency market has rallied over the past few days and looks set to build on the momentum in the coming hours and days.
The crypto market has been recovering from its recent slump, with the total market cap increasing by more than $100 billion over the past few days.
Bitcoin finally topped the $40k resistance point and is currently trading above $41,000 per coin. Ether, the second-largest cryptocurrency by market cap, has also rallied in recent days.
Ether has added more than 15% to its value over the past week. The rally saw ETH break past the $3,000 resistance level.
There is no major catalyst behind this latest rally except the recovery by the broader market. The cryptocurrency market has been in a bearish trend for the past few months. Since reaching an all-time high in November, most cryptocurrencies have lost more than 40% of their values
Ether is still down by more than 30% from the all-time high of $4,800 it achieved in November. If the current rally is sustained, ETH could move towards the $3,500 resistance level over the coming hours or days.
Key levels to watch
The ETH/USD 4-hour chart is very bullish, thanks to Ethereum’s rally over the past few days. The technical indicators show that ETH is currently performing well and could rally higher soon.
The MACD line is currently in the positive zone, indicating a strong bullish trend for Ethereum. The 14-day relative strength index of 55 shows that Ether is no longer in the oversold region. If the rally continues, ETH could enter the overbought territory.
If the bulls remain in control, ETH could top the first resistance point above $3,200 over the coming hours. In the event of an extended rally, ETH could trade above $3,500 for the first time in more than a month.