Technical Analysis and Market Entry: ETH/USD Has Formed A Big Bullish Pennant Subject To Breakout
- Ethereum bulls are subject to another explosive breakout, as the price consolidates.
- ETH/USD price action has formed a bullish pennant structure via the daily chart view.
ETH/USD: Recent Price Behaviour
Ethereum price has been moving within consolidation mode for going on ten sessions, as the bulls take a moment to breathe. ETH/USD is on a powerful move, which has been consecutive, in comparison to some of its peers. Market bulls are on a nine-week run to the north, having gained as much as 140%.
The foundations were laid at the very back-end of 2019, after bottoming out at depressed levels of $120. Ethereum has managed to rise up to heights seen in the latest week, up at $290, highest since July 2019. A run of gains like this was last seen back in 2017, demonstrating a new wave of promising pressure.
Weekly Chart View
As mentioned above, ETH/USD has much bullish momentum behind it with the current straight move north. At the end of January, the price was able to break free from a descending channel structure. It had contained Ethereum from July 2019, as the market was very much within the control of the bears at the time.
The price is now at a critical crossroads, an area that is either going to make or break the current bull market. There is a chunky zone of supply which runs from $270-290 price range, of which ETH/USD has not traded above since July 2019. Should the bulls successfully break down this region, it could be the key to restore another stronger wave of buying momentum.
Daily Chart View
Price action via the daily chart view is significantly narrowing within a triangular structure, more so a potential bullish pennant. It is increasingly edging towards an explosive breakout, appearing to be just the case of when. The pole of the pennant is the pumping that has been observed since the get-go of 2020.
A buy position from the current price market region is of interest, with targets eyed at; $300, $340 and then $365. Stops to be placed below the pennant at $235. Another entry and further confirmation would be upon a daily breakout and retest of the noted structure.
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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