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Amid the new year recovery in the crypto market, the Ethereum coin rebounded from a rising trendline and surged 11.5% in the last ten days. Thus, the altcoin is currently trading at the $1330 mark and trying to break a monthly barrier of $1340. This resistance level is also the neckline of a bullish pattern called ascending triangle, which could accelerate buying pressure in the near term.
Key points:
- A potential bullish crossover between the 20-and-50-day EMA would increase the possibility for a $1340 breakout.
- A breakdown below the rising support trendline will invalidate the bullish thesis.
- The intraday trading volume in Ether is $5.3 Billion, indicating a 76% gain.
Source- Tradingview
The daily time frame chart shows the Ethereum price has been walking a sideways trend for the past two months. During this consolidation, the $1340 level stood as a crucial resistance that actively restricted any bullish growth.
However, a new support trendline has emerged with the recent improvement in the crypto market and bolsters buyers for reclaiming higher levels. Moreover, this rising support trendline and fixed resistance level reveal the formation of an ascending triangle pattern.
During the pattern formation, the higher low swing observed in the chart reflects the increasing bullish momentum in the market. Thus, with this core concept, the ETH price could eventually break the pattern neckline resistance and offer long entry opportunities for interested traders.
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Thus, a daily candle closing above the $1340 neckline will give buyers a higher footing to lead the bullish rally. Furthermore, with sustained buying, the bull may drive 13.5% higher to reach the $1500 psychological mark.
However, on January 9th, the daily chart showed a higher price rejection candle at $1340 resistance. This rejection hints the sellers are continuing to defend this barrier, and therefore, the prices may consolidate of few more trading sessions before giving an upswing breakout.
Technical Indicator
RSI: Contrary to the ETH price, the daily RSI slope witnessed no restriction from above and showcased a steady uptrend. This bullish divergence in indicators gives additional confirmation for upcoming recovery.
EMAs: Amid the recent recovery, the ETH price reclaimed the 20-50-and-100-day EMAs providing more support levels for long traders.
Ethereum Coin Price Intraday Levels-
- Spot rate: $1329
- Trend: Bullish
- Volatility: Low
- Resistance level- $1340 and $1420
- Support level- $1230 and $1160
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