The price of Ethereum rose almost 7% to close to the $2,200 level of psychological resistance after reports suggested that the US-Iran war could end soon.
Summary
- Ethereum price rose nearly 7% to $2,153, recovering from recent losses.
- The sense of danger has increased after signs of a possible end to the war between Iran and the US
- A cup and handle pattern is formed on the daily chart.
According to data from crypto.news, the price of Ethereum (ETH) rose to a six-day high of $2,153 on Wednesday, April 1.
The recovery followed after the leading altcoin fell nearly 16% from its monthly high of $2,360 to $1,972 early Monday. The drop came amid growing uneasiness in the market over the back-and-forth war between the US and Iran. Its most acute impact was the blockade of the Strait of Hormuz, a key sea corridor that forced oil prices to record highs.
The price of Ethereum rose again following reports that the president of Iran is willing to end the war with the US and Israel if certain conditions are met.
Although the details of these demands are unclear at the time of writing, they have previously asked for more control over the Strait of Hormuz region, compensation for wartime damage to the nation, allowing it to continue its nuclear power program, and a guarantee that the US will not launch another attack on the country.
The US, on the other hand, has also signaled that there may be an end to hostilities with Iran, even if the Strait of Hormuz is still closed, although Gulf countries such as Saudi Arabia and the UAE have urged the US to continue the war until the blockade is lifted.
Later today, US President Donald Trump will deliver a speech where he will share major updates on relations with Iran.
Notably, the impact of the potential settlement was already felt in energy markets as WTI oil prices fell by almost 5% shortly after the report. At the same time, the crypto market rose along with US equities such as the S&P 500.
The bearish signs gave Ethereum traders a temporary reprieve, easing the bearish pressure that emerged after Google’s research into quantum computing raised concerns that Ethereum’s encryption could eventually be compromised.
On the daily chart, the price of Ethereum has formed a cup and handle pattern, a bullish continuation pattern popular in technical analysis. ETH price has just broken out of the handle pattern, a sign that the uptrend is resuming.
Technical indicators suggest that the bulls have the upper hand at the moment. Notably, the 20-day SMA has crossed over the 50-day SMA, Ethereum price is looking at the 50-day EMA next at $2,160. Additionally, the supertrend is glowing green, indicating a buy signal.
Therefore, the next immediate resistance level that traders will be on the lookout for lies at $2,200, a level where previous selling pressure has historically intensified.
A break above this level may encourage Ethereum to the neck of the cup and hold the pattern at $2,384, with the next main target at $2,450, which is in line with the 100-day SMA.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are for educational purposes only.
