This Simple Pattern Suggests Ethereum Is Preparing For Another Leg Higher

Ethereum is showing positive signs and was trading at a new monthly high of $ 281 against the US dollar. The ETH price should continue to rise as long as it is above USD 260.

  • Ethereum extended its rally above the $ 270 and $ 275 resistance levels.
  • The price reached a new monthly high of $ 281 and is currently correcting lower.
  • A new contraction triangle forms on the hourly chart of the ETH / USD (data feed about octopuses) with a resistance close to USD 272.
  • The pair is likely to break up and continue to move towards $ 280 and $ 288.

The price for the Ethereum wins bullish

In the past few days, the Ethereum has risen steadily above the USD 250 resistance against the US dollar. The ETH price was above the resistance of $ 260 and the simple moving average of 100 hours.

The recent upward trend has resulted in the ether price gaining more than Bitcoin and rising above the USD 270 resistance. It even rose above the $ 280 level and hit a new monthly high of $ 281.

It is currently correcting lower and trading below the $ 275 level. There was a break below the 23.6% fib retracement level of the upward move from the $ 260 swing low of $ 281. Immediate support is close to the $ 270 level (the most recent breakout zone).

Ethereum

Ethereum price trades above $270. Source: TradingView.com

A new contraction triangle is forming on the ETH / USD hourly chart with resistance close to $ 272. The triangle support is close to the 50% fib retracement level of the upward move from the $ 260 swing low to the $ 281 high.

On the upside, the price faces a few small obstacles near the $ 275 level. A significant break above the USD 275 resistance could potentially open the door to a sharp surge towards the USD 280 and USD 288 levels. The next hurdle is near the $ 300 level.

Bearish break at ETH?

On the other hand, the triangle support is near the $ 268-270 zone. If there is a downside break below $ 268, the price could go down further.

The next major support is near the $ 260 level (the pivot zone), below which the price is likely to drop towards the $ 250 level.

Technical indicators

Hourly MACD – – The MACD for ETH / USD is slowly picking up speed in the bearish zone.

Hourly RSI – – The RSI for ETH / USD is currently correcting towards 50.

Main support level – $ 268

Main resistance level – $ 275

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