Ethereum Price Analysis: ETH/USD Behavior Points to a Larger Upside Move to Come
- The Ethereum price has cooled in the session on Monday, but this could be a blessing in disguise for the bulls.
- ETH/USD 60-minute chart view sees a bull flag formation, subject to an extended breakout higher.
The Ethereum price cooled on Monday, after enjoying a chunky run during the previous session. The ETH/USD bulls saw a gain of over 9% over the course of that session. Given the large and fast advance, it wasn’t too surprising to see touted profit taking. The high print was observed just above $219 on Sunday; at the time, the RSI was well into over-bought territory. As a result, ETH/USD has been easing on Monday.
60-minute Chart View
Despite nursing losses in this session, price action has formed a bullish flag pattern, as it consolidates. This suggesting an extended move to the north could be coming, should the support continue to remain firm during this period of softening. Near-term support is eyed at $205, which is where the lower trend line of the above-mentioned bull flag is currently tracking.
The RSI, via the 60-minute chart spiked above above 90 on Sunday as prices peaked. The index has since cooled back down to 50, leaving enough room for the bulls to capitalize again. By focusing on the bullish flag pattern, upper near-term resistance is immediately eyed at $210. Should the bulls’ breakout, going via the length of the flag pole, the next upside target could be $230 territory.
Daily Chart View
Looking at the daily chart view, a pullback towards the top of the breached pennant pattern can be eyed. This would come into play should the above-mentioned bull flag, via the 60-minute chart view fail. The pennant was breached during the bull run seen during Sunday’s session. A convincing break above $200 mark, which was where the upper trend line of the pattern was tracking.
Support can be eyed back at the psychological $200 mark, on top of the above-mentioned pattern. Should a pullback be completed to the textbook, following the breakout, it could be very encouraging for the bulls. Ultimately, a new wave of buying may be seen, with an upside target of $250. ETH/USD last traded up at these heights on 22nd September.
In terms of key areas of support, should the pennant fail to provide any comfort, a deep move lower would be eyed. Further south, a demand area is seen down within the $170 price territory. ETH/USD having last traded here on 12th September, where decent buying was seen. It went on to run up to $250, before being hit by sellers.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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