Ethereum Price Breaks Out Of Accumulation Zone; Back To $1800?
The crypto market witnessed a slight improvement in market sentiment, resulting in a recovery rally since last weekend. Thus, the Ethereum coin price jumped 20% from the $1250 mark and hit the $1500 mark. This development breached a monthly resistance trendline and $1400 level, offering further growth opportunities in the near term.
Key points:
- The ongoing rally in the Ethereum coin offers a breakout opportunity from the $1400 resistance
- The 100-day EMA stalls bullish growth at the $1500 mark
- The intraday trading volume in Ethereum is $34.6 Billion, indicating a 195% hike.
Source- Tradingview
Following the mid-August to late-September downfall, the Ethereum coin price resonated in the consolidation zone. The wide uncertainty among investors with interest hike programs from the US Fed prolonged this accumulation movement for over a month.
Furthermore, this range-bound movement was shaped into an inverted pennant pattern and offered an entry opportunity for interest trade. This trading setup followed the rare case scenario we mentioned in our previous article and gave an upside breakout from the pattern’s resistance trendline.
On October 23th, this bullish breakout signaled the end of the accumulation zone and that the prices may begin a recovery rally. The post-rest jump registered an 11.7% gain and pushed the Ethereum price to its current level of $1496.
Furthermore, this bull run breached a monthly resistance level of $1400, and the coin price is expected to retest this level as well. Doing so will offer another long entry opportunity for sidelined buyers with a possible target to hit $1600, followed by $1800.
Conversely, a daily candle closing below $1400 during the retest phase will undermine the bullish thesis.
Technical indicator-
Relative strength index: the daily-RSI slope at the doorstep of the overbought region hints the prices have jumped too quickly in a short period. Thus, the altcoin is poised for a minor correction(aforementioned retest) to acquire suitable footing.
EMAs: the recent jump has reclaimed the 20-and-50-day EMAs, offering an extra edge in the buyers’ favor.
Ethereum intraday price levels
- Spot price: $1498
- Trend: bullish
- Volatility: Low
- Resistance level- $1600 and $1800
- Support level- $1400 and $1250
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