After a two-month consolidation, the (Ethereum)ETH traders escaped the symmetrical triangle pattern with a bullish breakout. Outperforming the largest cryptocurrency, Bitcoin, the ETH/USDT pair has rallied 16.5% this week. However, the buyers need to pass through a retest phase before they expect any follow-up rally.
Key points:
- The ETH chart shows an evening star pattern at $3000 resistance.
- The ETH price surpasses the 50 DMA
- The intraday trading volume in Ether is $12.3 Billion, indicating a 16.48% loss.
Source- Tradingview
The six consecutive green candles from the $2500 local support drove the Ether price to the $3000 mark. On March 17th, the bullish rally breached the resistance trendline of the continuation pattern, signaling a further recovery in price.
However, the altcoin forming a bearish evening star candle at $3000 resistance suggests the sellers continue to defend this level. However, the follow-up reversal would retest the breached resistance($2750) to confirm an honest breakout,
If buyers sustain above the $2750 level, the potential rally could pierce the $3000 resistance and hit the $3400 mark.
Contrary to the bullish thesis, if sellers slip the altcoin below the descending trendline, the range-bound rally would likely continue for a few more sessions.
Currently, the ETH price trades at $2852, indicating an intraday loss of 3.33%
Technical Indicator
The daily-Relative Strength Index indicator surpassed its previous swing high resistance(55%) and rallied to the 60% mark. The RSI slope holds above the equilibrium during the retest phase maintains a bullish bias.
The 50 DMA line will assist buyers to sustain above the $2750 mark. However, the overall trend remains bearish as ETH price trade below the 100 and 200 DMA.
- Resistance levels- $3000, and $3400
- Support levels are- $2741 and $2500
Disclaimer
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.
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Source: https://coingape.com/markets/ethereum-price-analysis-bullish-breakout-from-triangle-pattern-sets-sails-beyond-3000/