Ethereum Approaching the Apex of an Ascending Wedge as Bulls Prepare For A Break Higher

Ethereum has seen a small +0.71% price increase over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $224.66 after experiencing a small price decline totaling 2.85% over the past 7 rolling trading days.

Key Highlights:

  • Ethereum continues to trade in a period of consolidation as the market moves sideways.
  • It is currently trading at support provided by the .382 Fibonacci Retracement priced at $222
  • Support moving forward; $212, $202, $200, $188, $180.
  • Resistance moving forward; $288, $245, $253, $268, $276, $288, $300.

The ETH/USD market has been trading sideways as the market approaches the apex of the ascending triangle. Typically a market will breakout closer toward the apex with a great surge of volume that the majority of Ethereum holders have been longing for.

Ethereum continues to retain its 2nd ranked position in terms of overall market cap across the entire industry. It has a total market cap ranking of $23.01 billion after the 62-month-old cryptocurrency suffers a 52% price drop over the past 90 trading days. Ethereum is still trading at a price that is 86% lower than its all-time high value.

Let us continue to analyse price action over the short term and highlight any potential support and resistance areas.

Ethereum Price Analysis

ETH/USD – SHORT TERM – DAILY CHART

Chart Source by TradingView

Analysing the market from the short term perspective above, we can see that Ethereum has continued to trade sideways in its consolidation phase. It is currently trading at support provided by the .382 Fibonacci Retracement level priced at $222.78.

Over the past 2 weeks, we can see that the market has begun to form an ascending wedge formation and price action is quickly approaching the apex of the consolidation pattern. A break out toward the upside could be the initial domino to fall which sees Ethereum rise back above $300 once again.

In the event that price action does break toward the upside, we would see immediate significant resistance at the medium term 1.414 Fibonacci Extension level (drawn in green) priced at $253.69. IF the bullish momentum can continue even higher we can expect further support at the shorter-termed 1.272 and 1.414 Fibonacci Extension levels (drawn in blue) priced at $268.13 and $276.59.

Alternatively, if the bears push price action below the triangle we can expect immediate significant support below at the short term .618 Fibonacci Retracement level priced at $202.82. If the bears push the market even further below $200 then more support can be expected at the .786 and the .886 Fibonacci Retracement levels priced at $188 and $180, respectively.

For a significant bullish run higher we will be closely watching the RSI indicator on the daily time frame where we will be expecting the RSI making its way toward oversold conditions near the 70 handle. So long as the RSI can remain above 50, this should indicate that the bulls are in control of the momentum within the market.

Summary

Ethereum Price Analysis: Ethereum Approaching the Apex of an Ascending Wedge as Bulls Prepare For A Break Higher

Article Name

Ethereum Price Analysis: Ethereum Approaching the Apex of an Ascending Wedge as Bulls Prepare For A Break Higher

Description

Ethereum Price Analysis: Ethereum has seen a small +0.71% price increase over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $224.66

Author

Yaz Shaikh

Publisher Name

Coingape

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