This Simple Pattern Suggests Ethereum Is Preparing For Another Leg Higher
Ethereum is showing positive signs and it traded to a new monthly high at $281 against the US Dollar. ETH price likely to continue higher as long as it is above $260.
- Ethereum extended its rally above the $270 and $275 resistance levels.
- The price traded to a new monthly high at $281 and it is currently correcting lower.
- There is a new contracting triangle forming with resistance near $272 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to break to the upside and continue higher towards $280 and $288.
Ethereum Price Gaining Bullish Momentum
In the past few days, there was a steady increase in Ethereum above the $250 resistance against the US Dollar. ETH price settled above the $260 resistance and the 100 hourly simple moving average.
The recent upward move was such that ether price gained more than bitcoin, and climbed above the $270 resistance. It even spiked above the $280 level and traded to a new monthly high at $281.
It is currently correcting lower and trading below the $275 level. There was a break below the 23.6% Fib retracement level of the upward move from the $260 swing low $281 high. An immediate support is near the $270 level (the recent breakout zone).
Ethereum price trades above $270. Source: TradingView.com
There is also a new contracting triangle forming with resistance near $272 on the hourly chart of ETH/USD. The triangle support is close to the 50% Fib retracement level of the upward move from the $260 swing low $281 high.
On the upside, the price is facing a couple of minor barriers near the $275 level. A clear break above the $275 resistance may perhaps open the doors for a sharp increase towards the $280 and $288 levels. The next hurdle is seen near the $300 level.
Bearish Break in ETH?
On the downside, the triangle support is near the $268-$270 zone. If there is a downside break below $268, the price could continue to move down.
The next major support is near the $260 level (the pivot zone), below which the price is likely to accelerate lower towards the $250 level.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level.
Major Support Level – $268
Major Resistance Level – $275
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