Ethereum [ETH] Price Analysis: Pennant Pattern Breakout Confirms Path to $300


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Ethereum [ETH] Price Analysis: Pennant Pattern Breakout Confirms Path to $300

  • 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

Ethereum price analysis
Chart source: Tradingview

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.

Also Read: Crypto-Market Cap Breaks $275 Billion: Bitcoin 2nd Pullback Attempt, BSV Gains 100%

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.

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Ethereum [ETH] Price Analysis: Pennant Pattern Breakout Confirms Path to $300
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Ethereum [ETH] Price Analysis: Pennant Pattern Breakout Confirms Path to $300
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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.
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Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Author: John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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John Isige 165 Articles

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Follow John @