Ethereum appears to be in a strong Buy Zone. Excepting new ATH soon.
Analyzing Ethereum's price action using 7, 21 and 100 EMA for short, mid and long term trend.
Short Term Trend (7 EMA)
ETH is currently trading near or slightly above its 7 EMA level, suggesting strong buying interest and a short term bullish trend as well. This indicates that active traders are sustaining the slow upward movement. However, expect small dips as part of regular price corrections.
Mid Term Trend (21 EMA)
The 7 EMA last crossed 21 EMA from below on 6th Nov. and since then ETH's price is comfortably moving above the 21 EMA confirming an ongoing bullish sentiment. This again shows that buyers are maintaining control over the mid term move too.
Long-Term Trend (100 EMA)
The 100 EMA offers insights into broader market dynamics. ETH has remained above this EMA for an extended period and since the 7 and 21 EMA cross over it still shows a strong long term uptrend. This positioning aligns with the notion of Ethereum gaining institutional interest and investor confidence.
Resistance and Support Levels
Currently, the $4000 zone seems to be the key resistance for a bigger break out. If it closes a weekly candle above that range, then we may see a good rally for the next few weeks, probably making a new ATH soon.
If somehow things go south then expect $3500 to be the support level which was already tested twice in last two weeks.
Market Sentiment
The overall sentiment suggests Ethereum is in a strong buy zone. The moving averages point to sustained bullish momentum. The volume so far has been quite good. This makes Ethereum attractive for both short and long term traders.