Analysis

This Simple Pattern Suggests Ethereum Is Preparing For Another Leg Higher

Ethereum is showing positive signs and it traded to a new monthly high at $ 281 against the US Dollar. ETH price likely to continue higher as long as it is above $ 260.

  • Ethereum extended its rally above the $ 270 and $ 275 resistance levels.
  • The price traded to a new monthly high at $ 281 and it is currently correcting lower.
  • There is a new contracting triangle forming with resistance near $ 272 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to break to the upside and continue higher towards $ 280 and $ 288.

Ethereum Price Gaining Bullish Momentum

In the past few days, there was a steady increase in Ethereum above the $ 250 resistance against the US Dollar. ETH price settled above the $ 260 resistance and the 100 hourly simple moving average.

The recent upward move was such that ether price gained more than bitcoin, and climbed above the $ 270 resistance. It even spiked above the $ 280 level and traded to a new monthly high at $ 281.

It is currently correcting lower and trading below the $ 275 level. There was a break below the 23.6% Fib retracement level of the upward move from the $ 260 swing low $ 281 high. An immediate support is near the $ 270 level (the recent breakout zone).

Ethereum

Ethereum price trades above $ 270. Source: TradingView.com

There is also a new contracting triangle forming with resistance near $ 272 on the hourly chart of ETH/USD. The triangle support is close to the 50% Fib retracement level of the upward move from the $ 260 swing low $ 281 high.

On the upside, the price is facing a couple of minor barriers near the $ 275 level. A clear break above the $ 275 resistance may perhaps open the doors for a sharp increase towards the $ 280 and $ 288 levels. The next hurdle is seen near the $ 300 level.

Bearish Break in ETH?

On the downside, the triangle support is near the $ 268-$ 270 zone. If there is a downside break below $ 268, the price could continue to move down.

The next major support is near the $ 260 level (the pivot zone), below which the price is likely to accelerate lower towards the $ 250 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently correcting lower towards the 50 level.

Major Support Level – $ 268

Major Resistance Level – $ 275

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Analysis – NewsBTC

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