- Ethereum’s price is back within the bulls’ control, as they look to drive it further north.
- ETH/USD broke out of a near-term bullish pennant structure, inviting an additional wave of buying pressure
ETH/USD: Recent Price Behavior
Ethereum’s bulls could be coming back for good as the price is on a decent run, moving towards its third consecutive session in the green. ETH/USD has gained double-digits within the noted period, some 11% at the time of writing. The price is trading at the highest levels in nine sessions.
ETH/USD 60-minute chart.
Bulls Smash Out of Pennant
ETH/USD via the 60-minute chart view has seen the bulls smash out from a bullish pennant structure. The surge of upside momentum came following a period of consolidation, which was initially a result of the bulls losing ground at the back end of June. Ethereum had broken out of a bullish flag structure, as seen on the daily chart, followed by a retest and the narrowing trading.
A breakout and pick up in volume saw the price moving out from the above-noted narrowing price behavior. An initial spike of some 6% was observed, followed by another small consolidation period, forming the described 60-minute pennant. The breach does leave the door open to further upside pressure.
The breakout did also see somewhat of a pullback, retesting a near-term demand zone. It was an area where ETH/USD was topping between 7-8th July; this should now act as a new comfort territory for the bulls. A failure of the supporting range holding could see the structure forced to being redundant.
Key to Greater Upside
ETH/USD has been granted a boost to capitalize on a further advance. However, the price now has to deal with a large acting area of supply. It can be seen running from the $315-$345 range; the price has not seen a daily closure above this since 10th August. At the time, Ethereum was stuck within a steep bear market.
The price most recently faltered up at these heights at the back-end of June; it was the high for the month, $360. ETH had wicked above the noted zone, but the daily candlestick was forced to close below the territory. It then began to consolidate as earlier detailed, following the momentum being lost for the bulls.
ETH/USD daily chart.
A buy position does remain attractive, given the breakout and successful retest of the bullish flag seen via the daily. The fact that it held and did not fall back through the south makes it encouraging to buy confirmations. Upside targets would be $380, $420 and then $500 in the near-term. Stops would be placed just below the bullish pennant structure, as observed via the 60-minute chart at $300.