Ethereum Technical Analysis Sees ETH Track BTC Higher
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- Ethereum has a bullish short-term trading bias and a bearish medium-term outlook
- The four-hour time frame shows that a bullish inverted head and shoulders pattern has formed
- The daily time frame shows that a breakout above the $140 level could be very bullish for ETH/USD
Ethereum is moving higher on Monday, as the second-largest cryptocurrency by market capitalization continues to track BTC higher.
The cryptocurrency is currently in the green by around 10% on a monthly basis, after finding strong technical support from the $124 level last month.
Technical analysis is pointing to a potential bullish breakout if buyers can hold the ETH/USD pair above its 50-day moving average, around the $140 level.
The four-hour time frame shows that the ETH/USD pair has turned technically bullish over the short-term for the first time since November.
Furthermore, a small inverted head and shoulders is in play, which holds an upside projection of around $12.
The mentioned time frame also highlights that a rally towards the $158 level would create an even larger inverted head and shoulders pattern, that could eventually lift the ETH/USD pair back towards the $200.00 level.
The daily time frame shows that buyers are testing towards the ETH/USD pair’s 50-day moving average, around the $140.00 level. Continued gains above this key area would be a positive development over the medium-term.
Rising trendline resistance and Ethereum’s 200-day moving average are both converging, and highlighting the technical importance of the $200 level as a medium-term target.
The daily RSI has turned bullish for the first time since November and has significant upside potential before becoming oversold.
Upside Potential
The four-hour time frame shows that key technical resistance is now located at the $140 and $158.
Key technical resistance over the medium-term is located at the $178 and $200 levels.
Downside Potential
The four-hour time frame is showing that Ethereum has strong long-term technical support around the $135 and $131 levels.
A loss of the $124 level could spark a major decline in the ETH/USD pair towards the $105 level.
Summary
Ethereum needs to rally above the $140 level in order to secure further short-term gains towards the $158 level.
Overall, a near-term rally towards the $158 level appears achievable, although the $200 level is the preferred medium-term upside target.
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