Ethereum price analysis: Huge bullish potential for ETH above $405

ETH/USD moving inside a compressing structure
Levels to take into account are $395 on the upside and $302 on the downside

Tomas Salles FXStreet

ETH/USD has developed since early May a technical structure that is compressing the price and has organized some interesting patterns. Every Ethereum attempt to break the topside of the triangle has developed a bearish big-size Doji candle, redirecting the price towards the base of the price structure.

MACD is showing a significant width in-between lines, ensuring that a new cross with the resistance trendline is on the way, still with some room to advance. This resistance has already stopped strong bullish runs in the past, so it is likely that the upcoming test will be eventful, with every Ethereum trader focusing on those all-time high levels. Expect some profit-taking and some new bids there.

The bullish scenario shows $404.98 as the most meaningful resistance before a free ride to unexplored territory, which would trigger a huge bullish potential. If we look at a bigger timeframe, the weekly chart shows a wide open MACD aiming to the upside, so if $404.98 is broken, bullish potential is huge.

On the bearish side, support is located at $302, in the trendline coming from early May. If broken, that would take Ethereum price straight to the $270 mark, where the 200-SMA is now standing.

Conclusion

Price action is going to dictate, as usual, upcoming moves for Ethereum, the second-biggest cryptocurrency by volume, but right now MACD strength is setting up a bullish scenario for the upcoming weeks. The current technical structure shall only be changed by extreme external shocks that could change the whole technical picture.

Author

Tomas Salles

FXStreet

Tomàs Sallés was born in Barcelona in 1972, he is a certified technical analyst after having completing specialized courses in Spain and Switzerland.

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.