There is no point in talking about the current bull run of the global cryptocurrency without mentioning Ethereum. The world’s largest altcoin has seen a weekly increase of nearly 30%, which is actually slightly higher than Bitcoin’s percentage gains. However, ETH prices were still within the boundaries of a downward channel after a broader market correction stalled their push northward. At the time of writing, ETH was trading at $ 2,270, down 3% over the past 24 hours.
Ethereum daily chart
Since May 19, ETH has consistently hit lower highs and lows, which eventually led to the formation of a downward channel. Although ETH rallied from $ 1,700 several times, gains have been capped below the upper trendline and sellers have reacted to various levels of resistance.
The 100 percent extension of its June 22 low was now around $ 2,400 and clashed with the upper bound of the ETH pattern. Hence, it can be argued that a successful close above this level would initiate a longer rally in the market.
$ 2,600 incoming?
The Fiboancci Extension tool highlighted some potential targets should ETH break above $ 2,600. The 127.2% expansion was $ 2,620 while the 161.8% expansion was $ 2,866. These areas were also largely in focus as the bulls attempted various rallies after the May 19th market decline. On the flip side, a small dip between $ 2,100 and $ 2,160 can be countered – an area supported by the 200 SMA (green).
The Relative Strength Index successfully climbed above 50-55 for the first time in over two months as buying pressures returned to the market. The Aroon uptrend stayed near 100% indicating a strong uptrend. The Squeeze Momentum Indicator also saw a move above the half-line, which would indicate a further increase in buying pressure.
ETH expected an important breakout in the coming days to extend its current rally. A move above $ 2,400 would highlight the next target level, which is at $ 2,600 and $ 2,800. In the meantime, traders can wait for a breakout confirmation and long ETH once prices close above $ 2,400 to take advantage of this projected spike.