For the world’s largest altcoin Ethereum, the past two weeks have seen mostly range-bound price action. ETH’s price consolidated between $2200 and $2400 and in the past 24-hours, a break out did take place. If the bullish momentum sustains, ETH may soon see increased price discovery post its ATH and flip a strong resistance level into support.
At press time, ETH was trading at $2545 and had a market capitalization of $288 billion. In the past 24-hours, the bulls in the market helped ETH secure a price hike amounting to close to 4 percent.
Ethereum 1-day chart
Source: ETH/USD, TradingView
Ethereum’s price continues to move within the upper limit established by its immediate resistance at $2651 and its support level around the $2161 price range. If the bullish momentum were to continue in the market, ETH is quite likely to flip its resistance into a crucial support level.
In such a scenario, ETH is likely to go past its current ATH and establish a new one with quite a margin. The long-term outlook for ETH looks quite promising and traders can expect this bullish momentum to sustain in the coming days. However, a correction in BTC’s price may be amplified in the ETH market, leading to a minor price correction but not one that is strong enough to push the price to its second support level at $1967.
Rationale
Technical indicators for the altcoin look quite healthy and promising in the long term. MACD indicator underwent a bullish crossover earlier in the day and given how the market is evolving at the moment, a trend reversal isn’t very likely. RSI indicator also concurs with such a view as it heads well into the overbought zone. With a strong buyer market, ETH’s price is likely to benefit immensely in the coming week.
Conclusion
ETH is on the verge of a new ATH and if the bullish momentum keeps up, it may not be long. The key resistance level at $2651 may soon be flipped to strong support and in the coming week, this level can help ETH bounce back in case of a price correction.
