Ethereum (CRYPTO: ETH) was spiking up over 5% on Friday, reaching up toward an important psychological level at $3,000 after breaking up from a triangle pattern on March 15 that Benzinga called out four days prior.
Ethereum appeared relatively stronger than Bitcoin (CRYPTO: BTC), which was trading about 2% higher heading into the weekend. The cryptocurrency market may have realigned itself with the general markets, which have been rebounding since Tuesday.
The U.S. Dollar Currency Index, which trader Justin Bennett noted is inversely correlated to Bitcoin, declined 1.5% between March 14 and Thursday but spiked slightly higher on Friday. The rise didn’t appear to tamper down the crypto sector.
The U.S. Dollar Index has been in a strong weekly uptrend since May 2021 and in July of that year, Bitcoin began an all-time high run from a low of $29,321 printed July 20 to a Nov. 10 all-time high of $69,000. Similarly, Ethereum reversed course on July 20 at the $1,717.41 mark and reached an all-time high of 4,867.81 on Nov. 10.
Regardless of the strong uptrend in the U.S. Dollar Index, Ethereum looks set to fly higher because the crypto has developed an uptrend on the daily chart and for bullish traders and investors who are not already in a position, the next higher low may provide a solid entry point.
The Ethereum Chart: Ethereum reversed into an uptrend on March 7, which was confirmed on Wednesday when the crypto formed a higher high above the March 9 high-of-day at the $2,774.26 mark. The crypto’s most recent higher low was printed on March 13 at $2,492.98 and when Ethereum prints its next higher low above that level, bullish traders may choose to enter into a position.
- If Ethereum closes the 24-hour trading session near its high-of-day, it will print a bullish Marubozu candlestick, which indicates higher prices may come on Saturday. If higher prices don’t come, the second most likely scenario is that Ethereum will print an inside bar pattern.
- On Friday, the eight-day exponential moving average (EMA) crossed above the 21-day, which is bullish. The crypto also regained support at the 50-day simple moving average, which indicates longer-term sentiment has turned bullish.
- Ethereum has resistance above at $3,057.82 and $3,240.01 and support below at $2,890 and $2,609.02.
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