Key takeaways
- Ether is up by more than 6% in the last 24 hours and briefly hit the $2,600 mark.
- The cryptocurrency could rally towards $2,900 amid strong technicals.
ETH surges 6% to hit $2,600
Ether (ETH), the second-largest cryptocurrency by market cap, is one of the top performers among the top 10 cryptocurrencies. The coin added more than 6% to its value in the last 24 hours and now trades at $2,598 per coin.
The positive performance comes amid a strong recovery by the broader crypto market. Bitcoin is heading towards the $110k mark after adding 3% to its value. Dogecoin and Cardano are also up 7% and 6% respectively in the last 24 hours, while XRP, TRX, and BNB are also in the green.
Ether’s rally can be attributed to increasing interest from institutional investors. Data obtained from Glassnode shows that 106,000 ETH coins flowed into spot Ether exchange-traded funds (ETFs) last week, indicating strong institutional demand.
ETH could rally towards $2,900 soon
The ETH/USD 4-hour chart is bullish but inefficient, suggesting that there is a transfer of money about to take place on the lower timeframe. The technical indicators are bullish, suggesting buying pressure on Ether.
The coin has been trading between the 50-day simple moving average (SMA) ($2,528) and the horizontal support at $2,323 in the last few days. Both MACD lines are within the positive region, suggesting a strong bullish bias. Furthermore, the RSI of 66 shows that ETH is currently entering the overbought zone.
Ether could likely dip to $2,530 to become efficient on the 4-hour timeframe, allowing it to rally higher. If the bulls remain in control, Ether could rally towards the first major resistance level at $2,738. The coin could test the next major resistance level at $2,879 if the bullish bias extends longer.
However, if the bulls become exhausted before hitting any of the above-mentioned levels, the bears will try to pull the pair below the $2,323 support. Failure to defend this level could see the pair plunge to the next major support level at $2,111.
