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

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.

ETH/USD

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.

ETH/USD

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD rises above 1.21 amid better market mood

EUR/USD has been extending its gains, recapturing 1.21 as the market mood improves. The German ZEW Economic Sentiment beat estimates with 61.8 points. Treasury Secretary nominee Janet Yellen's testimony is awaited.

EUR/USD News

GBP/USD clings to 1.36 ahead of Yellen's testimony

GBP/USD is edging above 1.36 as markets eagerly Treasury Secretary nominee Janet Yellen's testimony. The UK parliament is set to process the Brexit deal as Britain ramps up its vaccination campaign.

GBP/USD News

Gold recovers further from multi-week lows, climbs to $1845 region

Gold gained positive traction for the second consecutive session on Tuesday. A modest USD pullback was seen as a key factor that benefitted the metal. The risk-on mood, rallying US bond yields might cap gains for the commodity.

Gold news

Breaking: Ethereum explodes to new yearly high, validating upward price action

Ethereum has ascended to new yearly highs after breaking the recent peak achieved in January. The flagship altcoin is trading at $1,372 amid the push for gains eyeing $1,400. 

Read more

US Dollar Index looks side-lined near 90.70

The greenback, when tracked by the US Dollar Index (DXY), appears to have moved into a consolidative range around the 90.70 level following the closing bell in Asian markets.

US Dollar Index News

Forex Majors

Cryptocurrencies

Signatures