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The previous week saw Ethereum flipping $1,603 from resistance to foothold following a morning star candle pattern.
Bulls secured renewed upside momentum after the alt jumped beyond its 3-month trend-line support, reclaiming their position beyond the 20-50 Exponential Moving Average.
The supply territory might trigger slowdowns in the near term as ETH’s price nears the reversal pattern’s apex level.
A possible bounce back from the Bollinger bands’ topside band might catalyze short-term slowdowns. While publishing this blog, the second-largest crypto changed hands at $1,713.5, gaining 1.83% within the past 24 hours.
Ethereum Daily Timeframe
Ethereum’s long-term trend-line resistance (current support) eventually cracked following a broad market buying resurgence. Meanwhile, the Bollinger Bands’ basis line appeared north while exhibiting a buying superiority.
The alternative token witnessed a more than 73% return on investment (ROI) from its July 13 low, slamming the nearest supply territory around the $1,750 mark during this publication. However, the latest bullish engulfing candlestick might trigger short-term buying tendencies.
The bullish cross on the 20-50 Exponential Moving Average has further established the buying preference on the daily chart. A closing beyond the $1,790 would confirm bearish invalidations.
Such scenarios would place the potential target near the $1,900 territory. Meanwhile, buyers succumbing to the surging wedge setup would lead to a closing beneath the BB’s basis line. Such developments would see $1,442 cushioning immediate retracements.
Reasoning
The RSI (Relative Strength Index) maintained its spot beyond the middle line to confirm a buying edge. Traders should watch for reversals below or towards the support at 57 to determine potential bullish invalidations.
Though the price action remained at its highs within the previous week, the Volume Oscillator declined to confirm bearish divergence. Bears might ensure the supply territory unless buyers trigger massive buying volumes.
Final Thought
Considering the surging wedge pattern nearing the supply region, Ethereum might experience sluggish tendencies within the upcoming sessions.
Nevertheless, a closing beneath $1,790 would confirm bearish invalidations. The possible selling/buying targets would stay as discussed above. Lastly, investors should watch Bitcoin’s action as Ethereum shares a massive 94% correlation with BTC.
Stay tuned for upcoming crypto updates.
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