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Ethereum is ready to catch up with Bitcoin as its price broke through new all-time highs.
Ethereum Looks Primed for Higher Highs
Ethereum price has finally broken out of a week-long consolidation period that led to an ascending triangle on the 4-hour chart. A horizontal trendline was created throughout the stagnation phase along with the swing highs, while a rising trendline developed along with the swing lows.
As upward pressure mounted in the last few hours, the $1,290 resistance barrier was no longer able to keep ETH at bay. The increasing buying pressure pushed ETH through this hurdle to hit a new all-time high of $1,440.
Now, the second-largest cryptocurrency by market capitalization could advance another 17% to make a new record high of $1,680. This target is determined by measuring the distance between the triangle’s two highest points and adding it to the x-axis.
The SuperTrend indicator adds credence to the optimistic outlook. This technical metric flashed a “long” signal within the same time frame as Ethereum sliced through $1,290 resistance. The bullish formation suggests that ETH has more room to go up.
It is worth noting that the last time the SuperTrend index flashed a buy signal on the 4-hour chart was in late December, leading to a 115% bull rally.
Still, the Fibonacci retracement indicator anticipates another major hurdle for Ethereum. Mid-January 2018’s all-time high of $1,420 may pose a threat to ETH’s uprising.
Only a 4-hour candlestick close above this level will signal a breakout into higher highs.
A pullback may occur if ETH fails to move past the overhead resistance. Under such circumstances, the 78.6% Fibonacci retracement level will become a crucial focal point for this altcoin’s trend since it could lead to a rebound or a full-blown reversal.
Regardless, the downside seems capped at $1,130 support as the selling pressure behind Ethereum continues to decrease dramatically. Santiment recorded a 21% spike in the number of ETH tokens held by non-exchange wallets over the past week.
At the time of writing, this author held Bitcoin and Ethereum.