Ethereum Defies Downward Trend: Holding Strong Above Key Moving Averages

• Ethereum’s TVL surged to $59.697 billion, surpassing Bitcoin.
• Ethereum’s price rose 25% to $3,974, nearing resistance at $3,780.
• Bullish indicators persist with a 50-day EMA support, but the MACD suggests caution.

In the face of recent downward momentum, Ethereum (ETH) continues to hold above its 50-day and 200-day moving averages, indicating a sustained uptrend.

Last month, Ethereum experienced a notable 11.04% decline, yet it saw a remarkable increase in trading volume. However, its market capitalization fell by 5.27% within the past 24 hours. Meanwhile, the Ethereum blockchain has shown a notable increase in its total value locked (TVL). Over the past few days, it has risen to an impressive $59.697 billion, surpassing Bitcoin. This rise is a clear indication of growing investor confidence in Ethereum’s potential and future performance.

From a technical perspective, Ethereum recently paused its upward movement after reaching a high of $3,974. This consolidation followed a 25% price increase triggered by a breakout from a descending triangle pattern on the daily chart. Despite a minor pullback, Ethereum is approaching a significant resistance level at $3,780.

Should Ethereum break through and stay above this resistance level, it may indicate the persistence of a bullish trend, potentially resulting in additional gains. Daily chart technical indicators show a favorable outlook, with the 50-day EMA offering support, signaling continued bullish momentum.

Moreover, the golden crossover between the 50-day and 200-day EMAs suggests a long-term optimistic trend. However, the MACD’s bearish crossover advises caution. The RSI, having fallen below the 50 level and the 14-day SMA, indicates a temporary weakening in momentum. Critical support levels for Ethereum are at $2,800 and $3,100, while resistance levels to watch are at $3,600 and $3,980.

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