By press time, the Ethereum price stood at the $1905 mark, recording an intraday gain of 0.7%. The daily chart indicates that buyers face a slight obstacle at the local top of $1922, formed during the breakout of the wedge pattern. Flipping this barrier into support would offer buyers excellent follow-up for the bullish breakout, potentially paving the way for further recovery.
The recent downturn in Ethereum’s price saw a rebound below the 38.2 Fibonacci retracement level, hinting that the overall market trend remains bullish. If the price breaks through $1922, a swift 5.5% rise in Ether’s value could be on the horizon. Intraday trading volume in Ether is at $3.3 billion, marking a 28% dip.
The June 2nd daily green candle is critical for Ethereum’s price, as it showcases several traits for an upcoming rally. The long bullish candle, formed at the recently breached angular trendline and horizontal resistance of $1850, signals that buyers are keeping prices at higher levels and should sustain further growth. The green candle also engulfs the past three days’ price action with ample volume, signifying high buying momentum. Consequently, a breakout above the overhead barrier of $1922 would point to the next substantial resistance levels lying directly at $2000 and then $2138.
Moreover, the June 2nd candle’s low represents critical support. A breakdown below it would undermine the bullish thesis. The wedge pattern breakout suggested a trend reversal, setting Ethereum’s price on a recovery path. In technical analysis, swing highs formed during the chart pattern’s development act as significant targets. If buyers breach $1922 in the coming week, the price could experience a sharp rally to $2000.
Some indicators provide insights into Ethereum’s performance:
1. Bollinger Band: An uptick in the higher band of the BB indicator implies that buying remains aggressive.
2. Stochastic: The indicator slopes of K% (blue) and D% (orange) have predominantly stayed above the 80% mark in recent months, signifying that Ether is an outperformer.
In conclusion, the Ethereum market shows potential for growth if the price breaks through certain resistance levels. However, there are obstacles to overcome that could impact its momentum. Investors must conduct thorough market research before committing to cryptocurrencies, as the author or publication assumes no responsibility for personal financial losses.
Source: Coingape
