Ether Holds Long-Term Support Ahead of All-Time High

The uptrend for ether is strengthening after the cryptocurrency avoided a breakdown below a crucial support threshold.

Aug 12, 2021 at 9:30 a.m. UTC
Updated Sep 14, 2021 at 1:39 p.m. UTC

Ether (ETH), the world’s second-largest cryptocurrency by market capitalization, is holding above the 40-week moving average. The long-term uptrend remains intact despite the sell-off from extreme overbought levels earlier this year.

The digital asset is on track to return near the all-time high around $4,300 as buyers remain active at support levels. 

The chart below shows ether’s long-term breakout above $1,400 in January and subsequent re-test of that level in February. Similar to bitcoin (BTC), ether avoided a breakdown below the 40-week moving average, which suggests the uptrend is strengthening. 

The relative strength index (RSI) on the weekly chart is neutral, similar to the situation in mid-2020, which preceded a strong price rally. For now, pullbacks appear limited around $2,500 to $3,000 support.

Ether weekly price chart shows the cryptocurrency trading above its 40-week moving average.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.