Technical Analysis and Market Entry: Ethereum Bulls Readying Big Break Above 2019 Highs
- ETH/USD is trading at seven-month highs, as momentum remains well with the bulls.
- The price has gained a chunky 122%, running higher for eight straight weeks.
ETH/USD: Recent Price Behaviour
Price action for ETH/USD has been making substantial advances to the north, rising to the highest levels seen since 11 July 2019. The bulls have been rallying for the last four consecutive sessions, which is part of an aggressive move higher. ETH did briefly observe some tightening in trading conditions for a few days between 8 – 11 February before breaking out further higher, as seen in the lastest bull run.
The foundations for the current steep incline to the north were laid back in December 2019, following the price bottoming out at depressed levels of $115. ETH/USD had been forced to the lowest price seen since February 2019, before being able to kickstart a recovery. The market underwent a heavy technical correction, following big pumping in the first half of 2019.
Weekly Chart View
ETH/USD has been consecutively rising from the ashes for the last eight weeks. A run as consecutive as this being observed, on a weekly basis, has not been seen since 2017. The bulls were able to gather stronger momentum, following a breakout of a descending channel structure. It had contained the price from July 2019, up to January 2020.
Over the noted eight-week period, ETH/USD has rallied a chunky 122% at the time of writing. The bulls during this have managed to push back above the psychological $200 and $250 price areas. Moves north of these respective regions are likely to restore buyer faith further.
Daily Chart View
As earlier mentioned, ETH/USD is enjoying a strong daily performance, running at three consecutive in the green. The bulls have also managed to break into a known area of supply, $270-290. Should the price hold within, then it could use this as another launchpad for further gains.
The last article, Ethereum targets have been successfully achieved. https://hacked.com/technical-analysis-and-market-entry-ethereum-bulls-extend-out-of-bullish-flag-pattern/. Given the pace of upside momentum, more significant moves to the north remain favourable. In terms of entry for buy positions, this is eyed around the current market price, between $275-70 range. A retest and hold here would be enticing to go long. Targets to the north; $310, $320 and then $330. Stops to be placed below the current zone leaving breathing room at $257.
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.
Featured image courtesy of Shutterstock.