The Ethereum price is approaching a crucial resistance area. A breakout above could trigger very rapid price acceleration. While both a breakout and a rejection remain possible, technical indicators are bullish, so a breakout is more likely.
Cryptocurrency trader @Cryptowat_ch notes that Ethereum is approaching a significant resistance level, which in the chart is outlined as a descending resistance line.
Will Ethereum be successful in breaking out above this line? If so, what is the upside target? Continue reading below to find out.
At the beginning of the year, ETH broke out from a descending resistance line that had been in place since January 2019. The price increased and reached a high of ฿0.0272, a critical resistance level, before falling back to support at ฿0.0217.
The breakout caused the weekly RSI to move above 50, something it had not done since June 2018. This is a long-term bullish sign that suggests ETH will continue moving upwards. If the price breaks out from the current resistance area, it could rally all the way up to ฿0.037.
The daily chart reveals that the price is following a very steep ascending support line. In addition, it is approaching a minor resistance area at ฿0.0259.
Technical indicators are bullish thanks to a bullish cross that has formed between the 50 and 200-period moving averages (MA). The price is trading above both, a sign that the bull trend has already begun.
As long as the ascending support line stays intact, ETH should reach this minor resistance area.
The hourly chart reveals a symmetrical triangle, which is considered a neutral pattern. However, since it is playing out after an upward move, and technical indicators are bullish, a breakout is expected.
The ETH/USD pair is similarly following an ascending support line. In addition, the 50 and 200-period MA’s have made a bullish cross, and the price is trading above them.
However, ETH is trading inside an important resistance area at $247, above which it unsuccessfully attempted to break out on June 1.
If the price breaks out, it is likely to rally all the way to the next resistance area at $277. However, a rejection would cause a drop to $217. There is a confluence of support levels at $217, so a bounce is extremely likely if the price returns to these levels, followed by another breakout attempt.
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Source: Be In Crypto