After ether’s recent surge, the natural question is one of continuation potential.
The cryptocurrency hit a multi-month high of $275 on Bitstamp on Wednesday and pulled back to $255 during today’s Asian session before moving back higher to $278 at 13:00 GMT.
At the time of writing, ether is priced at $267. The consolidation seen in the last 24 hours has produced a bull flag on the hourly chart, which is a continuation pattern.
1H chart
An hourly candle close above the top end of the flag at $272 would confirm flag breakout and signal a continuation of the rally from recent lows near $220. A breakout would bring the topside target of $300 on the radar.
On the flip side, if prices find acceptance under $255, the focus would shift to $230.
The odds appear stacked against the bullish scenario, given the daily RSI is signaling extreme overbought conditions.
D1 chart
The bulls may take off their feet from the gas pedal, allowing a descent correction, which could then end up powering a sustained move higher.
From the trading perspective, now is the best time to scale back some long exposure. If ether confirms a flag breakout, long exposure can be boosted but with tight stops as the cryptocurrency is already looking overbought.
