The technicals for Ethereum displayed strong bull run signals which might push the price above the $200-level, breaking its six-month high. November 2018 was a bloodbath, with Ethereum, like Bitcoin and other altcoins, nosediving to new lows. The prices have since been trying to recover from the dip.
ETH/USD’s one-day chart showed the formation of an ascending triangle pattern. Regardless of where they are formed, the pattern is bullish. Ethereum’s prices have been consistently forming higher lows for almost five months now. The reaction lows of the prices form the ascending line of the pattern. Meanwhile, a clear divergence between the price and volume can be seen.
The aforementioned points fulfill the criteria and confirm the formation of an ascending triangle. Hence, when the price breaks this pattern, a breakout to the upside, i.e., a bullish breakout, can be expected. This breakout could very well push the price of Ethereum past the six-month high, just like Bitcoin. Additionally, the MACD indicator shows that it is ready for a breakout as there is a bullish crossover has been recorded.
Further, there is resistance from $160 to $175, which is already being tested. If the price breaks out of this range, then the probability of a breakout will be higher. Ethereum’s price movement is very closely correlated with that of Bitcoin. More specifically, Ethereum’s price movements usually correspond to that of Bitcoin, despite lagging behind BTC’s own price movements. Thus, it can be expected that the price of ETH might follow Bitcoin’s trail and overcome the six-month high.
A Twitter user, @TheCryptoDog, commented,
“$ETH looking like $BTC about $1,000 ago.”
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