Ethereum’s price marched forward after bulls responded well to a symmetrical triangle setup on the chart. A 14% jump from the upper trendline pushed ETH towards the $3,500-mark. Moreover, the MACD and Awesome Oscillator attempted to cross above their mid-line and were expected to invite more buying pressure moving forward.
With buyers holding most of the aces, a fresh all-time high was just around the corner, provided ETH does not falter at a few price ceilings. At the time of writing, ETH traded at $3,443, up by 3.4% over the last 24 hours.
ETH Daily Chart
Source: ETH/USD, TradingView
ETH extended gains above its EMA Ribbons after breaking north from symmetrical triangle. With the 50-SMA (yellow) now turning bullish and adding an extra layer of protection, ETH was in prime position to close above $3,500. However, expect some lateral movement before the EMA Ribbons open up and identify a clear uptrend.
Meanwhile, the lack of supply for ETH between $3,750-$4000 could play in favor of the bulls. According to the Visible Range, only a limited amount of selling pressure was present at the 50% and 61.8% Fibonacci levels.
This meant that ETH just needed to traverse past a few near-term obstacles in order to register a fresh ATH. Once the price does close above these hurdles, focus should be on the 100% Fibonacci Extension level near $5,000.
ReasoningÂ
The Relative Strength Index traded above 55 and had the potential to run up to 70 before reversing trajectory. This translated to further upside for ETH. The MACD extended movement on the back of a bullish crossover, while the Awesome Oscillator looked to form its first green bar above the half-line in nearly 16 days. A move above each of their respective half-lines would generate more buying pressure in the market.
ConclusionÂ
ETH was favored to climb above $3,500 and test some important price ceilings in the coming days. With ETH’s indicators now moving into bullish position, expect ETH to overcome its 50% and 61.8% Fibonacci Extension levels with relative ease and set a new ATH close to $5,000.
