ETH’s upper sloping trendline extended from the 19 May decline and highlighted the formation of lower highs. The turning point came when ETH rose above this trendline on 26 July, something that allowed the price to snap away from its downtrend. Higher peaks soon followed which affirmed a strengthening market.
The next target for ETH now lay at its 26 May high of $2,915. A successful close above this region would heighten chances of recovery towards the neckline of ETH’s head and shoulders pattern at $3,200. On the other hand, a lower high formed below $2,440 could negate the chances of a favorable outcome.
The Relative Strength Index formed two peaks in the overbought territory over the last few days. This resulted in a bit of bearish divergence with respect to ETH’s price action. Positives came from the Awesome Oscillator which highlighted upwards pressure in the market and the DMI which solidified ETH’s uptrend.
If the RSI’s divergence does come into play, ETH will be set for a retracement over the next 24 hours. The recently flipped resistance zone of $2,540-$2,640 could then provide support to ETH and prevent a fall below $2,440.
Ethereum can find a resting ground between $2,540-$2,640 before resuming its hike towards the $3,200 mark. However, traders must be on the lookout for a move below $2,440 as this would invalidate a bullish thesis.
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The next target for ETH now lay at its 26 May high of $2,915. A successful close above this region would heighten chances of recovery towards the neckline of ETH’s head and shoulders pattern at $3,200. On the other hand, a lower high formed below $2,440 could negate the chances of a favorable outcome.
The Relative Strength Index formed two peaks in the overbought territory over the last few days. This resulted in a bit of bearish divergence with respect to ETH’s price action. Positives came from the Awesome Oscillator which highlighted upwards pressure in the market and the DMI which solidified ETH’s uptrend.
If the RSI’s divergence does come into play, ETH will be set for a retracement over the next 24 hours. The recently flipped resistance zone of $2,540-$2,640 could then provide support to ETH and prevent a fall below $2,440.
Ethereum can find a resting ground between $2,540-$2,640 before resuming its hike towards the $3,200 mark. However, traders must be on the lookout for a move below $2,440 as this would invalidate a bullish thesis.
Feel free and get in touch for signals and trade alerts
