Ethereum’s Upcoming Dips Might Be Limited, Here’s Why

Ethereum [ETH] has witnessed has seen its price rise steadily on the charts. The crypto-asset soared by approximately 20% over the holiday week as it appeared to be poised for yet another take-off. The technicals depicted a bullish outlook for the world’s largest altcoin after it broke the coveted $700-price level.

Despite creating a compelling opportunity for the bulls to breach crucial levels, Ethereum hit a minor slump of 0.76% over the past 24-hours which pushed its value to $723.7, At the time of writing, it registered a market cap of $82.3 billion and a 24-hour trading volume of $16.4 billion.

Ethereum [ETH] Daily Chart:

According to Ethereum’s [ETH] one-day chart, it was found that the asset was continuing to trade within the confines of its immediate resistance and support levels. ETH oscillated between the upward sloping trendlines of an ascending channel. As per convention, an ascending channel concludes with a bearish breakout. Meaning, if Ethereum’s value could soon witness a correction to the downside.

The diverging trend between the 50 DMA [Pink] and the 200 DMA [Purple] continued to exhibit a bullish prospect for the coin.

Bullish Alignment

MACD underwent a bullish crossover above the zero-line depicting a strong positive momentum. The RSI was also well above the 50-median line depicting a rising buy-pressure among the investors in the ETH market. However, the indicator has not crossed the overbought region which further, suggested that the crypto-asset has not formed a local top just yet and is primed for further gains.

Despite the mega-bearish pattern formation, the technicals were in favor of the bulls. Hence, a minor slip could potentially materialize in the offing but is not likely to be a strong downtrend in the long-term. Interesting levels for Ethereum to look out for were found at $778 and $823 respectively.

Meanwhile, it is important to note that $591 has formed crucial support for Ethereum, hence it is highly unlikely for the coin to see more damage than a plunge from this level. Other support points were $536 and $473.

Reena Shaw: Reena Shaw is a TWJ full-time writer on crypto-currency. A Journalism graduate, her research focuses on legislation and policy-making in the cryptocurrency market.