The second-largest cryptocurrency by market cap continues to put on a spirited fight towards recovering this year’s ATH after breaking and managing to stay above yet another difficult hurdle, the $3k resistance. Despite being the second most adopted cryptocurrency, Ethereum has pitted against Bitcoin especially after the EIP-1559 where analysts noted that Ether had taken the lead in controlling the entire crypto market.
Recounting previous price moves
Just like Bitcoin, since the May trickle down, Ether had been trapped in a tight range with prices wading between $1,730 and $2,900 for almost four months. As we reported earlier, this ranging pattern mainly points to indecision in the market where the number of sellers almost equals the number of buyers. It was thus noted that the most conservative way to trade such a setup was waiting for a break of price in either direction.
The consequent break and close of a daily candle above the $2,900 overhead resistance on August 6th followed by a bullish strength candle on August 7th set the mood for a further bullish cycle.
On August 13th, price managed to break yet another key resistance, the $3,163 area on which by Tuesday it was still squarely sitting. A brief look into the Stochastic/RSI indicator depicts the markets as already moving into the oversold region, signaling a possible further upside.
Temporary difficulty expected below $3050
For now, the price can be expected to range between $2,900 and $3,163 before gathering enough steam to propel it upwards. Zooming out into the 4-hour chart, Ether seems to be only facing two major hurdles before reaching and outdoing this year’s ATH. Looking left, preceding May’s major correction in the period from May 4th- May 18th, ETH seems to have formed a head shoulder pattern with a neckline being broken along the $3550 price. This area now becomes overhead resistance Barring a protracted crypto upsurge.
As it turns out, the price would need to break above the $3550 resistance to trigger another broad-based crypto rally pushing prices back to this year’s ATH at $4,380, after which, if this level is broken too, the price shall easily unfold towards $5,000 and beyond.