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- CoinMarketCap data indicates ETH achieved a 24-hour gain of 2.66% and was trading at $1,686.15 as a result.
- Meanwhile, ETH was able to break above a medium-term negative trend line that had formed on its weekly chart.
- If ETH closes this week’s weekly candle above $1,755, then it could rise to $2,130 within the next 2 months.
Data from CoinMarketCap indicated that Ethereum (ETH) had risen by 2.66% over the past 24 hours. Subsequently, the largest altcoin in terms of market cap was changing hands at $1,686.15 at press time. Most notably, technical indicators on ETH’s chart suggested that the cryptocurrency may be in the process of a significant bullish trend reversal.
Weekly chart for ETH/USDT (Source: TradingView)
ETH breaking above a long-term trend line on its weekly chart over the past week could be seen as an extremely bullish technical development. Furthermore, the leading altcoin’s price continued to trade above this trend line at press time, which could indicate that ETH was finally breaking out of the bearish cycle that it had been trapped in over the past few months.
A possible confirmation of the altcoin breaking out of its strong bearish cycle will be when ETH closes a weekly candle above the $1,755 resistance level. Should the cryptocurrency be able to close a weekly candle above this price point in the following 2 weeks, then it will have a clear path to rise to $2,130 in the following couple of weeks.
On the other hand, if ETH closes this week’s weekly candle below $1,645, then the bullish thesis may be temporarily invalidated. In this bearish scenario, the cryptocurrency’s value could look to retest the $1,555 support level. Thereafter, continued sell pressure could force ETH to as low as $1,460 in the following 2 months.
Daily chart for ETH/USDT (Source: TradingView)
Meanwhile, on the daily time frame, ETH was able to break above the $1,645 resistance level over the past 24 hours. A daily candle close above this mark in the next 48 hours could lead to ETH attempting a challenge at the $1,755 mark in the following few days.
Conversely, if sellers are able to force ETH’s price to close a daily candle below $1,645 in the next 48 hours, then the altcoin may be at risk of dropping to the subsequent support level. In this scenario, ETH’s value may fall to $1,555 through the course of the next week.
Investors and traders will want to take note of the fact that the daily MACD line was breaking away above the MACD Signal line on ETH’s chart. This suggested that ETH’s positive trend may continue in the next 24-48 hours.
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