- Ethereum price is still slowly climbing, transitioning into a rising wedge formation from an earlier ascending channel.
- Price bounced off the mid-channel area of interest as predicted in an earlier article, reflecting increased bullish pressure.
With the consolidation getting tighter and ethereum price approaching the peak of the wedge, a breakout in either direction is imminent.
Waiting for Bitcoin Breakout?
Bitcoin is also stuck in a consolidation pattern, as traders are probably on the lookout for more catalysts. This has kept ethereum price in consolidation against bitcoin for quite some time, with any potential strong moves in the latter likely to push ethereum out of its consolidation as well.
For now, the average directional index or ADX is reflecting ranging conditions, which indicates that no clear bias has been established yet. Stochastic is on the move down, favoring a downside breakout and a sustained selloff, while RSI is hovering on middle ground.
The 100 SMA is above the 200 SMA, also favoring an upside breakout. The 0.00300 level appears to be holding as a strong barrier, though, with another test of the wedge support around 0.00290 likely to take place. If reversal candlesticks such as dojis or spinning tops with long spikes form in that area, a bounce back to the top might follow soon after.
A long green candle closing past the previous highs at 0.00310 could be enough to guarantee that an upside breakout is happening and that further rallies are to be expected. On the other hand, a long red candle closing below the wedge support could confirm a downside break and a potential selloff until the next area of interest around 0.00260-0.00270 or the wedge lows at 0.00240.
Intraday support level – 0.00290
Intraday resistance level – 0.00310
Technical Indicators Settings:
- 100 SMA and 200 SMA
- RSI (14)
- Stochastic (8, 3, 3)
- ADX (14, 3)
Charts from Kraken, courtesy of TradingView