The situation for Ethereum (ETH) looks decent to good, depending on which trading pair one is using (BTC or USD) – with the latter looking more promising. Ethereum being the second crypto of the industry, the USD pairing probably carries as much weight as the BTC pairing.
On the daily BTC pairing chart (Binance), ETH is grinding slowly up in what will eventually result in a retest of a key resistance, starting at 0.034 BTC. This zone must be retaken and held in order to break above the broad downtrend – a downtrend with price history going back to 2017.
The double bottom visible on this pairing, which was caught by support around 0.03 BTC, signalled the potential for a trend reversal back to the upside. The daily RSI shows clear higher lows on these double bottoms, which resulted in yesterday’s pump away from that zone.
If we look at the hourly chart for more clarity, we can assess the sustainability of this reversal attempt. The second leg after the breakout was rejected, and a small double bottom looks to be forming.
However, the RSI divergence between the troughs is bearish – we would prefer to see more strength here on the hourly time frame (purple circle). Price is now riding the 55 hour EMA (pink), and it cannot fall below this moving average. The 15 minute chart shows similar readings.
Looking at the USD pairing, things look bullish on the long term timeframe. ETH had been building up to a breakout above $160 since December – which it finally did on April 2. It successfully retested this area between April 12 and 15. Looking at the big picture, ETH looks to be consolidating (purple circle) for a breakout from $180.
On the four-hour chart, ETH is stair-stepping its way through support/resistance (S/R) zones. Volume is building slightly over the last few days, and the short term trend is cautiously up. One more push up would put the second crypto within striking distance of $180.
If ETH were to break $180 – which more than likely won’t happen overnight – we may expect the second crypto to find significant gains. This is because ETH did not have huge breakouts unlike Bitcoin, Bitcoin Cash, and Litecoin; rather, it has enjoyed dogged and steady growth. Many want more, however.
(The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.)