ETH Rebounds 23% In Three Days; A chance For $1,800 Now?

Ethereum (ETH) price races ahead of BTC in terms of daily gains on Wednesday. The second largest cryptocurrency recovered by more than 20% in the past three days. Despite the recent upside rally, the market needs more confirmation to declare the bottoming out signal.

ETH price seems to move further up after flipping a significant support-turned resistance level near $1,500. The current market structure suggests that investors are gearing up for another leg-up to more crucial levels.

• ETH price prints gain following the previous session’s dull price action.
• A bullish breakout could push the price toward the $1,800 mark in the coming few sessions.
• The bulls must take a daily close above $1,680 with decent volumes.

As of publication time, ETH/USD reads at $1,603, Up 3.95% for the day.

ETH price makes upside move

In the recent price action, the ETH price gives a meaningful recovery following a short-term consolidation in the price. Earlier, the price has been trading in a significant downtrend momentum.

Now, when the price shoots up to the psychological $1,500 level, to sustain the upside more buyers will be needed. This price rally could be attributed to short-sellers, so to avoid this trap additonal buying pressure is required.

On moving higher the first upside target could be located at $1,800.

As per the technical indicators, the upside seems to be intact.

RSI: The RSI (14) approaches the overbought zone that warrants caution for the bulls.

MACD: The oscillator holds above the midline with a strong bullish bias.

 On an hourly chart, ETH is making higher highs and higher lows. After giving a good impulse move, the price enters the channel forming a bullish flag and pole pattern. In the past, we’ve seen that this bullish pattern is reliable. Now, ETH is again currently moving into a channel and hasn’t been able to break its previous swing high, which is acting as short-term resistance. 

On the flip side, a fall below the 20-day EMA could pause or halt the rally. Further, a break below $1,500 would intensify the selling pressure on the asset.

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.