Ethereum Price Analysis- Traders Look to Bitcoin Rally for Inspiration
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- Ethereum prices testing near-term support pivot- Outlook remains constructive above 350
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ETH/USD Daily Chart
Technical Outlook: Ethereum prices reversed off confluent slope resistance late-last month with the pullback now testing support at the June high at 405. Note that this level converges on the median-line of the broader ascending pitchfork extending off the July lows- look for a reaction here. A break lower would risk a move on 385 with bullish invalidation now raised to 350/55 – both areas of interest for exhaustion / long entries.
A breach above the record high close at 469 puts the focus back on topside targets at 499 and the 161.8% extension at 517- a breach above this threshold would likely fuel accelerated gains for Ethereum prices with such a scenario targeting a longer-term measured move into 622.
ETH/USD 240min Chart
Notes: A closer look at price action highlights a near-term descending median-line formation extending off the record highs with price turning just ahead of the upper parallel today. Bottom line: the immediate focus is on a break of the 402-469 region and while the risk is for further weakness near-term, ultimately we’ll favor fading weakness while above 350 with a topside breach of this formation needed to shift the focus back to the topside.
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- Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.