- The formation of a pennant pattern towards the end of last week culminated in a bullish breakout.
- The RSI entering the overbought zone would strengthen the current bullish momentum.
The cryptocurrency market is back in the green following a couple of days of retracement. Ethereum, like most of the major cryptocurrencies, recently stalled at $281 limiting higher movement. The correction from the highs dipped severally below the 21 Simple Moving Average (SMA) 4-hour before finding support at $220.
Etheruem Price Analysis – ETH/USD 4-hour chart
The formation of a pennant pattern towards the end of last week culminated in a bullish breakout. The price sprung up in two successive candlesticks while supported by the 21 SMA 4-hour. The breakout from this pattern is likely the one still holding the price higher above $280. Meanwhile, Ethereum is trading at $285 at press time with $300 being the next course of action for the bulls.
The first resistance is $290 (seller congestion zone) while $300 is the next hurdle that will mark the beginning of another bull rally could not only touch $320 but the trend towards $350 while focusing on $400 as the key target.
On the downside, initial support is seen at $280 (buyer congestion zone). If the price fail to break above $290 hurdle, a correction downwards will be used to create fresh demand for the second largest crypto. Extended declines will find support at $260 (second buyer congestion zone) while third support rests at $240 (another buyer congestion zone). The further correction will battle for support at $200 and $200 levels.
Ethereum Key Technical Indicators
MACD 4-hour: Horizontal movement at +5.18 confirms the bullish momentum. Slightly increasing divergence means the bulls are in control.
RSI 4-hour: Has stayed clear of the oversold region and currently testing the overbought level at 70.00. Entering the overbought zone would strengthen the bullish momentum even more.