- Cryptocurrencies are mostly in demand this week
- Ethereum rallies but fails to overcome the 2,667 level
- Momentum indicators are mostly bullish
Following Monday’s strong upleg, ethereum is experiencing a few quiet sessions by trading in a tight range. It is in the green today, but it remains stuck below the mid-September 2021 low of 2,667. Contrary to bitcoin’s strong performance and despite the positive newsflow, ethereum has failed to surpass the late-September peak, and hence continues to trade inside a developing symmetrical triangle.
In the meantime, the momentum indicators are bullish. The RSI is hovering comfortably above its midpoint, revealing a decent bullish pressure in ethereum. Interestingly, the stochastic oscillator has returned inside its overbought territory (OB), building a decent gap from its moving average (MA), but it is still far from testing its early October highs.
Should the bulls remain confident, they would try to finally overcome the 2,667 level and stage a decisive breakout above the triangle pattern. If successful, they could then test the resistance set by the 50% Fibonacci retracement level of the October 13, 2023 – March 12, 2024 uptrend, and have the chance to record a new 2-month high. Even higher, the path could become trickier with the 200-day SMA being the next key resistance level.
On the other hand, the bears are anxiously trying to engineer a move lower. The 61.8% Fibonacci retracement level and the 50-day SMA stand in their way at 2,507 and 2,468 respectively. The lower trendline of the developing triangle pattern will probably be the next support area, before the bears set their eyes on the 2,159 low.
To conclude, despite Monday’s rally, ethereum has failed to take advantage of the continued positive newsflow and record a higher high.
