Ethereum Price Analysis: ETH Rebounds 23% In Three Days; A chance For $1,800 Now?

Ethereum (ETH) price races ahead of BTC in terms of daily gains on Wednesday. The second largest cryptocurrency recovered by more than 20% in the past three days. Despite the recent upside rally, the market needs more confirmation to declare the bottoming out signal.

ETH price seems to move further up after flipping a significant support-turned resistance level near $1,500. The current market structure suggests that investors are gearing up for another leg-up to more crucial levels.

• ETH price prints gain following the previous session’s dull price action.
• A bullish breakout could push the price toward the $1,800 mark in the coming few sessions.
• The bulls must take a daily close above $1,680 with decent volumes.

As of publication time, ETH/USD reads at $1,603, Up 3.95% for the day.

ETH price makes upside move

In the recent price action, the ETH price gives a meaningful recovery following a short-term consolidation in the price. Earlier, the price has been trading in a significant downtrend momentum.

Now, when the price shoots up to the psychological $1,500 level, to sustain the upside more buyers will be needed. This price rally could be attributed to short-sellers, so to avoid this trap additonal buying pressure is required.

On moving higher the first upside target could be located at $1,800.

As per the technical indicators, the upside seems to be intact.

RSI: The RSI (14) approaches the overbought zone that warrants caution for the bulls.

MACD: The oscillator holds above the midline with a strong bullish bias.

 On an hourly chart, ETH is making higher highs and higher lows. After giving a good impulse move, the price enters the channel forming a bullish flag and pole pattern. In the past, we’ve seen that this bullish pattern is reliable. Now, ETH is again currently moving into a channel and hasn’t been able to break its previous swing high, which is acting as short-term resistance. 

On the flip side, a fall below the 20-day EMA could pause or halt the rally. Further, a break below $1,500 would intensify the selling pressure on the asset.