Ethereum (CRYPTO: ETH) is trading higher Monday and is seeing a bounce off the higher low trendline. The crypto has found support near this area many times in the past and saw a heavy downward move to this trendline once again yesterday, before bouncing back today.
Ethereum was up 8.28% at $2,821.79 at last check.
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Ethereum Daily Chart Analysis
- Ethereum is bouncing off the higher low trendline once again, an area that has held over 5 times in the past. The quantity of the bounces off this trendline show buyers are confident each time the crypto reaches the area that it will see a bullish push. If the crypto can continue to trade within the pattern, it may be able to see a breakout over the $4,000 resistance level over the next couple of months.
- The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating that ETH has been trading with a bearish sentiment in recent weeks. Each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) made a strong move higher in early February and has been consolidating since. The RSI now sits at 49 and shows that the buying and selling pressure in the crypto is relatively equal. If the RSI makes a large move in either direction, the price may do the same thing.
What’s Next For Ethereum?
Ethereum sits above the trendline and as long as it is able to hold above the line it may continue to trade with bullish momentum. The ascending triangle pattern is known to be a bullish continuation pattern if the price can cross above the resistance level.
Bullish traders want to see the trendline hold as support and for the price to cross above the moving averages, and then the resistance level.
Bearish traders are looking to see the price crack below the higher low support and be able to hold below that zone. A break below this support level would show the crypto is unable to form higher lows and signal that lower highs could be coming with a strong bearish move.