Ethereum (ETH) could reclaim $2500 as momentum indicators remain positive

Ethereum (ETH) has been recovering over the previous few days after tanking to its lowest stage in months. The coin is nonetheless poised for an even bigger bounce primarily based on momentum indicators. But it nonetheless faces main upward resistance and draw back danger. Here are some essential info:

ETH reclaimed $2000 after going through a significant sell-off this week

RSI divergence and the transferring common convergence divergence present indicators of bullish momentum

But ETH nonetheless stays pressured beneath essential resistance zones

Data Source: Tradingview

Ethereum (ETH) – How it’ll hit $2500

At the second, it doesn’t look like traders are keen to purchase any cash. This is a vendor’s market, and there are fears that the crash we noticed this week is barely the start. Despite this, we nonetheless assume that many cash will bounce again within the quick time period, and ETH is certainly one of them.

Momentum indicators particularly seem to recommend that Ethereum goes to rise. The RSI divergence and the transferring common convergence divergence present positive bullish indicators. If certainly ETH is ready to maintain the worth above $2000, then a surge in the direction of $2500 will probably be attainable. However, it received’t be that simple.

For starters, ETH nonetheless has to beat a number of essential resistance zones, together with its 50-day EMA of round $2,349. Also, the rally we noticed within the broader market yesterday could be short-lived. These dangers could make it more durable to ETH bulls to take over within the quick time period.

Will Ethereum return to $5,000 this yr?

Ethereum was predicted to do fairly nicely in 2022. Some analysts have been even concentrating on $10,000 earlier than the yr is out.

But primarily based on what has occurred available in the market over the previous few months, it now appears unlikely the coin will obtain such heights. However, a return of $5000 may be very attainable. But ETH will undergo from very excessive volatility earlier than it will get there.