Ethereum climbed past $ 2,000 a few hours earlier in the day. The $ 1950 mark was a technical goal for Etheruem after its breakthrough after $ 1,420, and although it took a while, Ether finally pulled it off. But it is likely that this is not the end of the trend.
Ethereum 1 hour chart
Source: ETH / USD on TradingView
The short term pattern observed was that of an ascending channel and usually a bearish reversal follows once the coins exit the pattern. Such a dump would bring ETH to $ 1,800, but no signs of a drop have yet been seen for Ether.
The lower and upper limits of the channel can be expected to serve as dynamic areas of support and resistance, while the highlighted region from 1950 to 2050 USD represents the projected profit-taking area based on the breakout. over USD 1420.
In the short term, the bullish momentum was behind ETH. A further test of $ 2000 could take place, as this is a crucial psychological level, and would be a good buying opportunity.
Contract justification
The RSI has not dipped below neutral 50 in the 1 hour period for a few days now, marking a significant uptrend in the shorter time frame and no divergence or sell signal has yet been spotted.
An entry into this region may not be the most timely when it comes to risk-reward. Ethereum’s slow rise over the past few days indicates that going long around the $ 2000 mark would be a good strategy. Important levels to watch are $ 1950 and $ 1915 to hold back as support – a move below these levels would indicate a breakdown of the ascending channel and a short-term pullback, while the 27% Fibonacci extension level gives a target of $ 2286 as profit taking. target.
Conclusion
The market was bullish in the shortest possible time, although ETH has yet to show the kind of explosive breakout some people have been expecting from the king of altcoins. The long-term outlook remains unchanged and no reversal signal has yet been seen for ETH with the ascending channel still unbroken.
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