- Ethereum price has sold off earlier in the month before consolidating in an ascending triangle pattern visible on its 1-hour time frame.
- Price recently made an upside break, spurred partly by the sharp correction in bitcoin, but could have enough bullish momentum to climb further north.
Ethereum price made a strong upside breakout from its short-term consolidation pattern and is testing resistance at 0.0030.
If the current levels are able to keep gains in check, ethereum price could retreat to the broken triangle resistance at 0.0025 for a quick retest. If this holds as support, price could move back up to its highs at 0.0030 and beyond.
Stochastic has just reached the overbought zone, indicating that the rally is already exhausted. RSI also checked in the overbought region and is starting to head down, signaling that bulls might need to take a break from here.
In addition, the latest candle right on the 0.0030 resistance appears to be a doji, hinting at a potential short-term reversal from the breakout if the next candle closes below its low. If the succeeding candle closes above the high or the 0.0030 level, it signals that bulls are refusing to let up and that another leg higher could be seen.
In addition, the 100 SMA is still below the 200 SMA right now, which means that bullish momentum might not be as strong yet. An upward crossover might be needed to confirm that ethereum price could sustain its climb. In this scenario, the nearby resistance levels are located at 0.0033 and 0.0040.
A strong return in bearish pressure could lead to a downside break of the 0.0025 area of interest, putting ethereum price on track to head back to the next potential floor at 0.0020 then at 0.0016.
Intraday support level – 0.0025
Intraday resistance level – 0.0030
Technical indicators settings:
- 100 SMA and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
Charts from Kraken, courtesy of TradingView