Why a rise above this level seems imminent for Ethereum
The Ethereum market was on its way to form a fourth straight green candle on the weekly chart. The prior week saw the formation of ‘three white soldiers’ which served as a possible reversal confirmation post ETH’s mid-May plummet. Although the world’s largest altcoin faced some snag on its daily chart, another hike was anticipated in the coming days. At the time of writing, Ethereum traded at $3,228 with a market capitalization of $363.9 Billion.
Ethereum Daily Chart
The situation was slightly different on ETH’s daily chart which highlighted a period of consolidating just before the $3,300-mark. Fibonacci tool suggested that buyers were on a hiatus before pushing ETH above its $61.8% Fibonacci level ($3243) but consolidation was a healthy sign before the next uptrend. Moreover, ETH’s bull flag was still intact which presented chances of another hike.
In such a case, traders must watch out for the 78.6% ($3,652.6) and 100% ($4,183) Fibonacci Extensions although not a lot of resistance was expected at these regions as per the Visible Range.
Ethereum’s sideways behavior gave rise to some bearish signals on some of its indicators but this was no reason to be alarmed. Squeeze Momentum Indicator showed some receding bullish momentum but still held above the half-line.
The same was the case with MACD which held its upwards trajectory. Directional Movement Index painted a fairer picture as the +DI maintained ground on the -DI. This meant that ETH’s uptrend was under no threat of reversing just yet. Bears would need to target a close below the 38.2% Fibonacci level, from where the bulls would need to be on alert.
Ethereum indicators still maintained an overall bullish picture despite some red signals in the market. It seemed like only a matter of time till ETH breaks above its 78.6% Fibonacci level- a result that presented a maximum upside of $4,183 in the coming days.