Hi traders, today’s update, we are looking at ETH on the daily chart. Recently cryptos have been doing well, and Bitcoin, in particular, has been leading the run. While not exactly up with Bitcoins gains, ETH has been holding its own, and just last week, we saw another test of 1800 by buyers.
Sadly, that was a short-term move, and we saw sellers regain control until this week. So far, we have seen 4% added by buyers, and price continues to pepper a decent-looking resistance area marked on our chart below in red. While yes, this is holding back buyer momentum, we also can see an ascending triangle pattern which could suggest buyers are building up to a possible new breakout attempt.
We like the look of this pattern as it sits higher after a strong leg upwards. Normally you want to see these patterns form in an uptrend to classify them as a possible bullish continuation pattern.
From here, if we see a new retracement form, we want it to hold in the current pattern. A break through the bottom of the pattern would start telling us a different story. A leg higher is also ok as long as buyers can clear and close above resistance.
Momentum, for now, remains with the bulls, but we do have this short-term resistance hurdle to clear.