Chart by TradingView
Key Support levels: $4,000, $4,350
Key Resistance levels: $4868 (ATH)
ETH gave some strong signals yesterday that it was turning bullish, particularly on the Bitcoin pair. Today, it has broken above the $4,350 resistance. If this momentum continues, ETH can enter a new rally that can take it back to the all-time high at $4,868 and beyond.
Trading Volume: The break above the key resistance at $4,350 took place on low volume, and this is not ideal. However, so long as the bulls continue to push prices higher, volume can pick up.
RSI: The RSI on the daily and the 4-hour timeframe are moving higher again after curving back up yesterday. This is bullish, particularly since the RSI has been making higher lows.
MACD: The MACD is still bearish on the daily timeframe, but the moving averages and histogram are curving back up significantly after today’s breakout. On lower timeframes such as 12-hours, MACD is bullish already. If it can complete a bullish cross on daily as well, then a new rally can start.
The bias for ETH has turned bullish considering today’s price action. So long as the momentum is maintained, ETH can continue to move up and strengthen the bulls as they prepare a new attempt to reach $5,000.
Ethereum’s price action has turned the altcoin market slightly bullish after today’s breakout. If this carries over into the next few days, the market will heat up again, and ETH can quickly approach the key resistance at $4,868. A break above that level and ETH can enter price discovery which can lead to a significant increase in price.
