The price of Ether (ETH) has broken through some key consolidation levels on both of its main charts. It is possible that a new uptrend may now be at hand, but it is still too early to tell how much strength the breakout will retain.
Starting on the ETH/BTC 4-hour chart, we see that the ascending triangle pattern has successfully broken out – and we now wait for a successful retest. Holding the 55 exponential moving average (EMA) will here probably indicate success in this regard: on a previous breakout earlier in the month, failure to hold the 55 signalled the breakout’s general failure.
Volume has picked up, but some follow through now is needed. Leaving the red support band, starting at ₿0.027, would perhaps signal an end to Ethereum’s depression down at nearly historic lows.
The story is much the same on the ETH/USD chart, although a different but equally bullish pattern has been broken-out-of.
A falling wedge pattern has been neatly broken last night (UTC), and now also sits ready to potentially retest the breakout zone. A bull flag has formed at time of writing; and it is worth mentioning that, on both charts, a bull flag might never fully retest the breakout zone but rather could continue up.
As with any Monday, this one is noteworthy for the weekly closing. In this regard, Ethereum looks good. Although volume was rather weak for the week (Bitstamp exchange, ETH/USD), buyers stepped in to support Ethereum and cancel out last week’s bearish shooting star candle.
We can take this as a statement from the bulls that they have no interest in losing the $300 level. This confident stance may be enough enticement to bring in more buyers this coming week.
Likewise, the ETH/BTC chart had an interesting close. Although maybe not as bullish as the ETH/USD chart, we see a clear doji candle at the bottom of this chart. Dojis can precede price reversals, and there isn’t a better place for a price reversal than where ETH/BTC is currently stuck at.
Looking at the MACD/Histogram chart, we see that, technically, the moving averages have crossed down bearishly for the week. But it is completely possible that this cross will not stick, and could end up reversing up for next week’s close. Ditto the Histogram bars: as happened in early May, the bars could tick back up into the positive region during the week.
In all, Ether has a chance to do big things this week; and it’s off to a good start.
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