Key Takeaways:
- Commodities expert believes Ethereum's role in digitizing finance would help its token's prices.
- ETH prices rebound off trendline support.
NEW DELHI (CoinChapter.com) — Bloomberg’s senior commodity strategist Mike McGlone believes Ethereum’s place in finance digitization would benefit its native token, Ether’s (ETH) price action.
Ethereum has been following the wider crypto market, falling in tandem with Bitcoin and the other cryptocurrencies. However, McGlone noted that demand and adoption of cryptocurrencies are growing despite the pullback in prices.
The commodities expert went on to say Ethereum is at the “epicenter of the digitization of finance and money.“
Also Read: Ethereum merge delay could upset its chances of displacing Bitcoin.
McGlone further stated that Ethereum was likely to continue outperforming the traditional equities market, despite the Ether token’s 11% drop over the past month.
In addition, in another tweet on Mar 30, McGlone highlighted Ethereum’s significance as a “denominator” for NFTs and a top platform for issuing new tokens. Meanwhile, Ether prices rebounded off ascending trendline support on Wednesday after falling nearly 6.6% intraday on Apr 27.
Ether Rebounds Off Ascending Trendline Support
The ascending trendline has supported ETH price action since Jan 24 earlier this year. On the other hand, the downtrend pushed Eth prices below their 100-day moving average (100-day MA; purple wave). The long upper wick on Apr 27’s daily candle indicates bears are selling on relief rallies.
Moreover, Ether’s 20-day MA (red wave) moved under its 50-day MA (yellow wave) on Apr 27 to form a bearish pattern called the death cross. Traders often consider the pattern an indicator of negative market sentiment and a sell signal.
If a sell-off ensures, ETH might fall to immediate support from its ascending trendline near $2,800. If bears continue to sell, Eth prices might breach below immediate resistance to test support near $2,680.
Finally, ETH prices have support near $2,580, a price level that previously supported ETH price action between Jan 26 and Mar 6.
Conversely, if bulls push off the trendline support, the resulting uptrend would help the ETH price flip immediate resistance near its 100-day MA (purple wave) near $2,900. A move above immediate resistance might see the Eth token target resistance from its 50-day MA (yellow wave) near $3,050.
Also Read: Ethereum losing institutional investment while ETH eyes 56% losses.
A sustained uptrend could push ETH prices to $3,200 before market corrections pare gains.
Meanwhile, momentum oscillator MACD continues to be bearish for ETH prices. Negative bars on the MACD histogram are expanding, indicating the MACD line (difference between 12-day and 26-day EMA) moves further away from the MACD signal line (9-day EMA of MACD).
Expanding negative bars indicate ETH’s price momentum favors the bears at present.
At the time of writing, ETH was trading at $2,852, up 1.5% on the day.
