- Ethereum bulls awake creating fresh demand for ETH from $270 support to areas under $290.
- ETH/USD technical levels suggest continued upward correction despite the overbought levels.
The cryptocurrency market has a tendency of trending upwards towards the weekends. Last weekend the market witnessed Bitcoin correction north not only reclaiming the levels past $9,000 but forming new yearly highs. However, before the investors get used to Bitcoin hovering above $9,000, the largest asset once again spiked to a new yearly high at $9,806.98.
The second largest digital asset has not been left behind and as usual, it is in tandem with Bitcoin price action. Ethereum soared to highs above $280; a hurdle that proved too hard for the bulls earlier this week. A new weekly high has been formed at $287.15, although a retracement has occurred where ETH/USD is exchanging hands at $286 at press time.
ETH/USD 1-h chart
Meanwhile, looking at the hourly chart, Ethereum is trading above the 100 Simple Moving Average (SMA) which is offering support at $270. The surge on Friday has its legs supported by the trendline in addition to the Relative Strength Index (RSI) whose signal points towards further correction despite the current overbought levels.
The Moving Average Convergence Divergence (MACD) is moving further up in the positive region. Besides, the increasing divergence to the upside suggests that Ethereum has potential to grind to new yearly highs and even touch $300 in the coming sessions.
As long as the technicals remain intact as they are at the time writing, Ethereum bulls, who are back and unstoppable could propel the digital asset past $300 if not defend a higher support pattern. The former resistance at $280 has been turned into a support, $270 is still the base of the current surge while $260 will play a vital role in preventing extended declines.
Ethereum Key Technical Indicators:
MACD: Increasing divergence in the positive zone is an indicator of rising bulls’ influence.
RSI: Bulls ignore the overbought levels as the price continues to soar.
100 SMA: Giving the surge legs at $270.
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