As the crypto market witnesses flickers of recovery, Ethereum (ETH) is gearing up to capitalize on this upward trend. While the popular altcoin has faced resistance at the $1,600 mark, technical indicators suggest that Ethereum could soon be gearing up for a bullish breakout.
Over the last few days, Ethereum has primarily oscillated between the $1,745 and $1,530 mark. Despite the broader market’s bullish aura, Ethereum has faced stiff resistance around the $1,600 level. The coin failed twice in the past week to cross this threshold, signaling significant overhead supply pressure.
One promising development is the emergence of a bullish morning star candle pattern starting from the $1,530 support. Historically, this pattern at a pivotal support level often foreshadows an upcoming bullish surge. Nevertheless, Ethereum’s candle formation revealed a high wick, pointing to aggressive sellers near the $1,600 territory. This could mean ETH might touch the $1,530 region again to gather bullish energy for its next upward move.
For those unfamiliar, the double-bottom pattern is a classic bullish reversal indicator. Currently, Ethereum’s daily chart is sketching out this pattern. Should this evolve as analysts predict, Ethereum might not only break free from its ongoing consolidation but might also eye a breach past the $1,745 barrier. Achieving this would certainly pave the way for a broader recovery trend, potentially driving the price above $1,800.
The Relative Strength Index (RSI) is deviating from Ethereum’s sideways movement, showcasing a rising trend that could suggest a mounting bullish momentum from the lower support. However, the daily ‘Super Trend’ has a red hue, indicating that sellers currently dominate the market.
At the time of writing, Ethereum’s price stands at $1,600.52, experiencing a minor 1.05% surge in the past 24 hours. Its trading volume over the same period amounts to approximately $5.94 billion. Ethereum comfortably holds the #2 spot on CoinMarketCap, boasting a live market capitalization nearing $192.5 billion. With a circulating supply of 120.26 million ETH coins, the crypto world keenly watches for its next move.
