Ethereum [ETH] has resumed an uptrend, and the latest bullish sentiment appeared to strongly support the current price level. Over the last seven days, the largest altcoin climbed by nearly 15%. Despite the fact that Ethereum’s price was found to be appreciating against the US dollar, but has failed to grab the limelight from Bitcoin.
Ethereum rose to a price of $655 after surging by 0.78%. At the time of writing, the coin registered a market cap of $74.68 billion and a 24-hour trading volume of $15.11 billion.
Bitcoin has been reaching new record levels. But as far as Ethereum’s price is concerned, it was still well below the peak of $1,440. $700-level formed a strong ceiling for ETH’s price action. Will Ethereun break the stagnancy and aim for bigger gains?
Ethereum [ETH] Daily Chart:
As depicted by the above chart, ETH formed a bearish rising wedge pattern, which does not appear close to its breakout point, hence oscillation within the two upward sloping trendlines could be on the cards in the short-term. This was indicative of a potential bearish breakout once the wedge completes and could essentially trigger a plunge to its previously breached support points.
The moving average, on the other hand, projected the continuation of the bullish momentum in the coming days. The 50 DMA [Pink] continued to hover well above the 200 DMA [Purple] supporting the ETH price candles from an extended downtrend. The rising gauge between the two was also another positive indicator.
The Stochastic RSI suggests an overbought signal for ETH and a prolonged bullish pressure could potentially keep this indicator in this positive zone for quite a while.
The OBV indicator shows that the volume of the crypto-asset recuperated in tandem with Ethereum’s price action after forming a bearish divergence. The above chart depicted a consolidation of volume as the price surged. This further showed that the current uptrend could flip soon towards bearish or the coin could see sideways movement due to volume consolidation.
Ethereum’s resistance levels currently stood at $700.55 and $812 respectively, while its price was supported at $531.9 and $380 by 50 DMA and 200 DMA.