The ETH price parabolic rally has gained 33.5% from $2500 within a fortnight. The coin price continues its rally to the north, nearing the overhead ceiling of $3400. Can buyers breach this another resistance, or minor correction is needed?
Key points:
- The $3400 breakout hints at another 7.5% rally
- The 20-and-50-day EMA performs a bullish crossover.
- The intraday trading volume in Ether is $17.9 Billion, indicating a 98% gain.
Source- Tradingview
The Ethereum (ETH) price escaped a two-month consolidation phase as the price triggered a bullish breakout from a symmetrical triangle pattern on march 18th. After a two-day retest, the bulls continued to rally higher and breached two significant resistance of $3000 and 200-day EMA.
Now, the coin price tags another resistance of $3400, preparing for a bullish breakout. If buyers succeeded in doing so, the ETH price would appreciate 7.5% to retest immediately supply region at $3600.
However, the altcoin may perform a minor correction to stabilize the aggressive buying. The potential pullback would provide a dip opportunity to traders, which is expected to revert from the $3000 physiological level.
A successful bullish reversal will indicate the traders’ sentiment has switched from selling on rallies to buying on the dip.
Technical Indicator
The fortnight rally has reclaimed the crucial EMAS(20, 50, 100, and 200). Moreover, the recently breached 200-day EMA could assist buyers in supporting the expected pullback.
The Relative strength index(70) has shown a similar growth charging straight towards the overbought region. Moreover, the RSI slope line has been this high during the November rally.
The average directional movement index(22) slope curves up, projecting the revival of the bullish momentum.
- Resistance level: $3400 and $3630
- Support levels: $3000 and $2773
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-eth-price-teases-bullish-breakout-from-3400-time-to-sell/