Ethereum has recently become a digital asset to watch with its holders preferring to stay for the long term. On the other hand, Bitcoin is relatively stable, suggesting that recovery above $40,000 will be an uphill battle. After retesting support at $1,200, Ether has been consistent in its recovery despite meeting critical barriers at $1,400 and $1,450.
The pessimistic outlook on Tuesday was ignored with Ethereum embarking on a barrier-breaking exercise. The formation of an ascending triangle pattern allowed the bulls to take control over the price, following a break past the x-axis.
Ethereum has risen above the old record high and is currently settled above $1,500. Ascending triangles are key technical patterns that identify consolidation periods that culminate in the continuation of the preceding trend.
The patterns stand out for giving traders exact price targets following a breakout. This target is measured from the highest to the lowest points of the triangle. In this case, ETH has a long way before hitting the 22% upswing to $1,800.
Meanwhile, Ether is doddering at $1,540 amid a building bullish momentum. The bullish narrative can be confirmed by the Moving Average Convergence Divergence (MACD).
The MACD line (blue) recently crossed above the signal line, encouraging traders to buy more of Ethereum. When carefully applied, the MACD can be a strategic trading strategy. However, it is best to incorporate other indicators as well.
ETH/USD 4-hour chart
It is worth mentioning that Ethereum may fail to rally to $1,800 if the uptrend fails to break above the near term key level of $1,600. On the other hand, support must be established above $1,500 to allow buyers to take charge and focus on lifting Ethereum to higher levels. Otherwise, Ethereum may correct to confirm support at $1,400 or $1,300.
Ethereum intraday levels
Spot rate: $1,540
Relative change: 28
Percentage change: 1.8%
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