Ethereum Price Analysis: Lower high on D1 probes ETH bulls eyeing $2,000
- ETH/USD snaps three-day losing streak following its bounce off $1,725.
- Successful U-turn from 10-day SMA, rising channel formation test the immediate bearish signals.
- Channel’s resistance line adds to the upside filters, MACD flashes warning to the buyers.
Ethereum is preparing for a bullish breakout while taking the bids near $1,795 amid the initial Tuesday. In doing so, the altcoin rises for the first time in the last four days while attacking the latest lower-high formation on the daily (D1) chart.
Although MACD flashes a bearish signal for the first time in two weeks, the quote’s ability to stay beyond 10-day SMA, also remaining strong inside an ascending trend channel from January 19, favors the ETH/USD bulls.
Hence, an upside break of the nearby resistance line, currently around $1,820, becomes imminent, which in turn will direct the buyers towards the record top marked during the month around $1,878.
It should, however, be noted that the ETH/USD upside past-$1,878 will be probed by the upper line of the stated channel, near $1,940, before directing the rally to the $2,000 threshold.
On the contrary, a downside break of a 10-day SMA level of $1,771 will be tamed by a confluence of 21-day SMA and the lower line of the aforementioned channel, at $1,614 now.
In a case where ETH/USD bears dominate past-$1,614, the $1,600 round-figure will offer an extra filter to the south before confirming the drop towards the monthly low of $1,271.
ETH/USD daily chart
Trend: Bullish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
