Is Ethereum (ETH) preparing for another Bull Leg or Dog Leg? Let’s take a look at the ongoing price surge and what it indicates.
The current price of Ethereum is US$ 467.59 at the time of publishing.
On the shorter time frame (daily chart), ETH recently broke above the minor downtrend resistance level we were watching, albeit not as convincingly as we would like to see.
The volume is dropping off with each push to the downside which isn’t overly bullish or bearish at the moment. However, the recent push to the upside isn’t the type of strong volume we’d like to see for a resistance break like we saw in mid-July when ETH finally snapped the $250 level and closed above $260 on the 22nd of July 2020. That was the confirmation we wanted to see to reinstate our belief that the bull market for ETH was about to begin.
Current Price Action
What we want to see for a continued bullish move is for ETH to defend the $415 level and then push above the current high of $448.47 (Bitfinex, Chart 1) on high volume and close above this level for at least 1 day, even better would be for 2 days. This will give us renewed confidence that the bulls are back in control.
Should we fail to hold the $415 price, then our next support level is around $380.
We can remain bullish provided the $360 level isn’t taken out. Then the next levels of support to watch will be $320 and if the market is very weak then $280 could be next.
Trading this market at the moment is going to be a little tricky with the ranges tightening between $380 and $450. In our opinion, an easy trade would be to buy on the break out of $450 following closely with a tight stop below the lows in case of a “fake-out”. If the market is strong, then we wouldn’t expect it to retrace back below $380.
We don’t expect Ethereum to flip Bearish after breaking out of the Bearish resistance it had been facing since June 2019 (Chart 2). Although a retest of some of the previous resistance levels would be very healthy for a sustainable multi-month Bull market we have all been waiting for!
Support & Resistance Levels To Watch:
Support – $380, $360, $320, $280
Resistance – $450, $500, $550
Overall Major Trend: Bullish
Altcoin Buzz recently also covered analysis about Ethereum on the Altcoin Buzz YouTube channel.
To find out about the trades the author watches, please visit Jason Pizzino’s YouTube channel.
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