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Ethereum Slices Through Critical Resistance Making New All-Time Highs

The second-largest cryptocurrency by market capitalization has just begun a new uptrend towards $1,700. 

Shutterstock cover by r.classen

Key Takeaways

  • Ethereum appears to have broken out of an ascending triangle.
  • If buy orders continue to pile up, Ether could rise to hit a target of $1,680. 
  • Everything now depends on ETH’s ability to move past the $1,420 resistance.  

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Ethereum is ready to catch up with Bitcoin as its price broke through new all-time highs.

Ethereum Looks Primed for Higher Highs

Ethereum price has finally broken out of a week-long consolidation period that led to an ascending triangle on the 4-hour chart. A horizontal trendline was created throughout the stagnation phase along with the swing highs, while a rising trendline developed along with the swing lows.  

As upward pressure mounted in the last few hours, the $1,290 resistance barrier was no longer able to keep ETH at bay. The increasing buying pressure pushed ETH through this hurdle to hit a new all-time high of $1,440. 

Now, the second-largest cryptocurrency by market capitalization could advance another 17% to make a new record high of $1,680. This target is determined by measuring the distance between the triangle’s two highest points and adding it to the x-axis.

Ethereum US dollar price chart
ETH/USD on TradingView

The SuperTrend indicator adds credence to the optimistic outlook. This technical metric flashed a “long” signal within the same time frame as Ethereum sliced through $1,290 resistance. The bullish formation suggests that ETH has more room to go up. 

It is worth noting that the last time the SuperTrend index flashed a buy signal on the 4-hour chart was in late December, leading to a 115% bull rally. 

Ethereum US dollar price chart
ETH/USD on TradingView

Still, the Fibonacci retracement indicator anticipates another major hurdle for Ethereum. Mid-January 2018’s all-time high of $1,420 may pose a threat to ETH’s uprising.

Only a 4-hour candlestick close above this level will signal a breakout into higher highs. 

A pullback may occur if ETH fails to move past the overhead resistance. Under such circumstances, the 78.6% Fibonacci retracement level will become a crucial focal point for this altcoin’s trend since it could lead to a rebound or a full-blown reversal

Regardless, the downside seems capped at $1,130 support as the selling pressure behind Ethereum continues to decrease dramatically. Santiment recorded a 21% spike in the number of ETH tokens held by non-exchange wallets over the past week.

At the time of writing, this author held Bitcoin and Ethereum.

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