Ethereum Builds Support Above 2k as Altcoins Gain Traction

The crypto market just passed $2 trillion of market cap thanks to a broad rally in altcoins. Now the top altcoin, Ethereum, may be poised for a move to new highs.

The most important feature on ETHUSD’s chart is its breakout above the February high around $2,000, followed by a brief retest and tight consolidation pattern. Old resistance appears to be new support.

Second, looking back to recent price action we find a pair of higher lows. Price first held the $1,400 zone that was previous resistance. It next clawed back from a dip below $1,600. That’s a textbook ascending triangle.

Third, MACD has turned positive as ETHUSD powered back above its 50-day simple moving average and 21-day exponential moving average early last week.

Zooming in on the four-hour intraday chart, we also find a volatility squeeze. Notice how Bollinger Bandwidth is back near the bottom of its 2021 range around 7 percent. That’s not necessarily bullish, but it could suggest ETHUSD is coiling for a move.

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