Ethereum has started to rally alongside the broader cryptocurrency market this week, however, buyers have finally started to overcome the pair’s key 200-day moving average.
Ethereum technical analysis shows that a series of daily price closes above the $175.00 level could send the cryptocurrency towards the $195.00 level.
ETH/USD medium-term price trend
The broader cryptocurrency market has been moving higher this week, with Bitcoin threatening to test the $10,000 level for the first time this year.
Continued gains in the BTC/USD pair should be bullish for ETH/USD pair, as the fortunes of the world’s largest cryptocurrency by market capitalisation are usually highly correlated to Ethereum.
Ethereum technical analysis shows that the cryptocurrency needs to keep price above the $175.00 level to turn technically bullish.
Key upside targets for the ETH/USD pair are currently located around the $185.00 and $195.00 resistance levels.
ETH/USD bulls need to establish a series of daily price closes above the $175.00 level in order to encourage technical buyers to enter into the new bullish trend.
Also, watch out for a breakout above key trendline resistance on the daily time frame, around the $182.00 level.
ETH/USD short-term price trend
Ethereum technical analysis over the short term shows that the cryptocurrency is bullish while price trades above the $150.00 level.
A large inverted head and shoulders pattern has formed over the four-hour time frame, with the bullish pattern holding an upside projection of over $20.00.
The neckline of the bullish pattern is currently located around the $175.00 level and indicates a potential rally towards the $195.00 level.
Dip-buyers are currently using any pullbacks towards the $170.00 level as an opportunity to position themselves for the potential rally.
Overall, watch out for a series of daily price closes above the $175.00 level, and then a major rally towards the $195.00 level.
ETH/USD technical summary
Ethereum technical analysis points to more gains in the cryptocurrency while price trades above the $175.00 level. Sustained gains above the $182.00 may trigger a huge rally.
