ETH faces resistances located at $ 1,150, $ 1,250 and $ 1,440.
Weekly and daily data are bullish.
ETH / BTC pair broke a descending resistance line
Ethereum’s price has risen over 40% in recent weeks, and is now approaching its all-time highs.
While the long-term trend is likely still upward, a short-term decline is expected before The News Spy resumes its upward movement.
The price of ETH increased considerably during the week of December 27 to January 4, by almost 43%. ETH continued to rise during the day of December 4, reaching a high of $ 1,162.97. That said, the price was unable to hold at that level, creating a long upper wick before dropping back below $ 1,000.
This high of $ 1,162 also coincides with the 0.786 fibonacci retracement level, or $ 1,150. If ETH continues to rise, the next resistance would be at $ 1,250, ahead of its all-time high of $ 1,440.
Although they are showing levels of overbought, technical indicators remain bullish. This tells us that ETH will likely continue to rise, and may end up reaching a new all-time high.
Similar to the weekly chart, the day’s data indicators remain bullish. That said, the current daily candlestick is taking the shape of a shooting star, which is normally considered to be a bearish reversal candlestick.
Ethereum’s daily close will be extremely important in helping to determine if ETH has hit a cap.
The two-hour chart shows the first signs of weakness in the form of a lower momentum bar in the MACD, as well as a decline in the RSI from overbought territory. Additionally, ETH is following an ascending support line, which currently sits near $ 800.
Thus, if the ETH continued to decline, it would likely find support near $ 800
Cryptocurrency trader @TheEWguy presented a chart of ETH, saying the price is in an extended third wave and will likely continue to climb above $ 1,000.
The wave count suggests that ETH is still in the 5th sub-wave (in black below) of the third wave (in white) of a bullish impulse that started in March 2020.
Price has already passed the target at $ 1,026 for the top of Wave 3, and is currently in rapid decline.
Thus, ETH is expected to decline in the short term in order to complete Wave 4, before resuming its upward movement towards a new all-time high.
The ETH / BTC chart is bullish, knowing that it reveals a rally to the 0.027₿ area, followed by a move above a descending resistance line.
The next resistance zones are at 0.0335₿ (which has already rejected the price) and 0.04₿.
Technical indicators are bullish indicating that ETH should break above the $ 0.0335 area and continue to rise. That said, a decline serving to validate its crossing point could take place before this advance.
Charts of ETH / USD like ETH / BTC appear bullish, despite the possibility of short-term corrective movement.
ETH / USD is expected to eventually climb to a new all-time high.