Ethereum price has risen nearly 7%, approaching the psychological resistance level of $2,200, following reports that the war between the US and Iran may end soon.
According to data from crypto.news, Ethereum ($ETH) Price rose to a six-day high of $2,153 on Wednesday, April 1st.
The recovery continued after the major altcoin fell nearly 16% early Monday from a monthly high of $2,360 to $1,972. The decline comes amid growing market anxiety following a series of attacks by the United States and Iran. The ripple effect was the closure of the Strait of Hormuz, a key maritime corridor that pushed oil prices to record highs.
Ethereum prices rebounded following reports that Iran’s president intends to end the war between the US and Israel if certain conditions are met.
The details of their demands were not yet clear at the time of writing, but they had previously asked for greater control over the Strait of Hormuz region, compensation for wartime damage to the country, permission to continue its nuclear energy program, and guarantees that the United States would not carry out any new attacks on the country.
The United States has also signaled a possible ceasefire with Iran even if the Strait of Hormuz remains closed, but Gulf states such as Saudi Arabia and the UAE have called on the United States to continue the war until the blockade is lifted.
Later today, US President Donald Trump is scheduled to give a speech in which he will share key updates on relations with Iran.
The impact of the potential solution was already being felt in energy markets, especially as WTI oil prices fell by nearly 5% in the immediate aftermath of the report. At the same time, the cryptocurrency market soared, along with U.S. stocks such as the S&P 500.
Signs of easing tensions provided short-term relief to Ethereum traders, easing bearish pressure that emerged after Google’s quantum computing research raised concerns that Ethereum’s encryption could eventually be compromised.
On the daily chart, the Ethereum price has formed a cup-and-handle pattern, a bullish continuation pattern popular in technical analysis. $ETH Price recently broke 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 is above the 50-day SMA, and Ethereum price is eyeing the next 50-day EMA at $2,160. Additionally, the supertrend is flashing green, indicating a buy signal.
Therefore, the next immediate resistance for traders to focus on is at $2,200, the level at which selling pressure has historically increased.
Above this level, Ethereum could rise towards the neckline of the cup-and-handle pattern at $2,384, and the next major target could be $2,450, which is consistent with the 100-day SMA.
