- Ethereum trend is strictly moving within an ascending price channel
- ETH/USD knocks at $478 resistance once again in a bid to close above $485
- Psychological $500 level looks possible on the hourly charts after mild correction
- Traders probe the upper trendline for a bullish run towards $492 resistance
Ethereum trend poised for a breakout – ETH/USD stays above $475
The recent Ethereum rally to $496 suggests that bulls aren’t letting their guard down. The bulls quickly handled the minor correction towards $470, and the price moved upwards within hours. The ETH/USD pair trades around the $475 mark and is comfortably above the critical trendline support.
Bulls are vigorously targeting the $500 level to help build psychological support for further uptrend. The test of $483 resistance was well within the ascending parallel channel. Bulls will have to close the pair above the $478 level to cement the positive sentiment. If the pair crosses $483 resistance with decent volume, the next short-term technical target remains $520. The Ethereum trend on the hourly charts is relatively neutral, with spikes on either side.
ETH/USD 4-hour chart – Ethereum looks contained but ready to jump higher
The current phase in the Ethereum trend is muted but filled with action. The spikes in the hourly candles show that the pair is moving wildly on either side. The high of $496 denotes the bull’s vigor to carry the pair higher after repeatedly knocking on the upper resistances. Also, the bears’ inability to sustain the price below $475 bodes well for the bulls.
The odds of a successful breakout from the Bollinger Bands are highly likely. Technical indicators, including RSI and MACD, are sloping upwards. There are no heavy resistances ahead, which may dent the present Ethereum trend. A significant amount of support lies between the $453 to $468 region, where bulls have laid out strong buying pivot points.
The wedge pattern on the smaller hourly timeframes does threaten the uptrend. But price needs to move towards $440 to validate any bearish scenario. The pair tested a $450 support level three days ago, but the rally nullified any near-term bearish takeover.
Daily Ethereum trend still has bullish written all over it
Tracking ETH/USD pair since September, the coin has consolidated above crucial resistances at $365. The 100-day simple moving average is sloping upwards to join the rising price channel. As the asset rises further, the channel will likely move higher on the daily timeframe.
However, little corrections on the way up can prove healthy indeed. The widening wedge poses a threat due to overheating technical indicators. The exhausting higher highs signal a weakening Ethereum trend. Many analysts believe that the pair is due for a correction in the near term. The overall Ethereum trend remains bullish, but the market must prepare for mild headwinds ahead. A new annual high may be around the corner once the volume surge demolishes higher resistances.
If the price cannot close above $500 in the next few days, the bearish scenario will start taking shape. Sellers will book profits once ETH/USD crosses the $500 mark. Technically, the ‘Awesome Oscillator’ is indicating a bearish turnaround for the pair on the daily charts. The volumes will soon reach early-September levels, which would warrant caution as the price went down back then. The price volatility is putting further pressure on the hourly candles.
Repeated rejections from $478 resistance pose a threat to the Ethereum trend
Ethereum gained approximately 5 percent this week. The pair is currently resting near the 3-month-old ascending price channel and has been repeatedly rejected from this upper range. Compared to Bitcoin, ETH now trades near a 6-month low.
Today, the pair was again rejected from $478 resistance. Earlier this week, the pair saw rejection from the $447 mark, where critical support lies. As bears regroup to increase selling pressure, the ETH/USD faces a challenging task in the near term.
Etheruem is no Bitcoin – How the coin fares among its peers
In 2020, the bullish Ethereum trend has helped it outperform both USD and BTC, especially since late October. As Bitcoin tears through $18,000 resistance, traders are getting cautious about an exuberant rally. Memories from 2017 are still fresh in many crypto analyst’s minds. However, Ethereum is not Bitcoin, and its trend depends on fundamentally different factors.
Globally, the crypto industry is now much more regulated and policy-oriented compared to 2017. The ETH/USD is still recovering from the DeFi fiasco, and there are critics of the ETH 2.0 launch date. Still, the pair have weathered these storms well and looks technically strong to cross $500. If broader crypto market support remains, Ethereum price can cross $600 by December end.
The current stagnation can prove to be an opportunity for the bulls to accumulate the coin. Both Bitcoin and Ethereum are well on their way to post new annual highs. The substantial year-to-date gains in ETH/USD is attracting large investors. DeFi still has its fundamentals in the right place. Historically, Etheruem has followed Bitcoin bull markets and the current BTC rally is a signal of good things to come.
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