Ethereum rose above $1250 and was trading at $1326 with the likelihood of testing $1440 on the back of demand from buyers. Aave continued to surge and targeted $260, and Algorand broke above an important region of supply and looked to flip that region into one of demand.
ETH closed beneath the ascending channel but this reversal pattern did not see the coin revisit the base of the channel. Rather, it reached a low of $1039 and bounced back strongly over the past few days.
The OBV made a series of higher lows to denote strong buyer interest even though ETH’s dip of around 25% over the course of three days. The Awesome Oscillator formed a bullish twin peak set up to generate a buy signal.
ETH rose past the $1220-$1270 region that has provided liquidity in the past. This ascent could see the price make another attempt at the $1440 local highs.
Using the Fibonacci retracement tool, and its 27% extension level, a target of $260 was set for the bulls in the short-term. Momentum was strongly in favor of the bulls.
However, the Stochastic RSI was in the overbought territory, while the RSI too was on the verge of going above the 70 value. This does not indicate a reversal, rather it shows that a pullback can materialize. A Doji candlestick on heavy trading volume would give an early sign that the market sentiment was beginning to shift in the short-term.
ALGO rose above the $0.54-$0.56 pocket of liquidity, a sign of bullish strength. The MACD showed strong bullish momentum, while the trading volume was also above average.
The next level of resistance lies at $0.63. Bulls will seek to defend the highlighted region from bearish pressure, failing which a level of support lies at $0.5.
A week ago, ALGO formed local highs at $0.6 but was unable to stay there. A repeat of that situation would see a double top form for ALGO- subsequent drops beneath $0.54 could be hard to recover from for the bulls.
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