Ethereum price chanrges forward on path to $5,500
- Ethereum price hits new all-time highs, continues to march higher with few impediments.
- Oscillators support a sustained rally.
- Price discovery mode activated.
Ethereum price enters into price discovery mode as it continues to press on towards new all-time highs. Little exists in the form of resistance for Ethereum.
Ethereum price spikes higher, bullish momentum likely to continue
Ethereum price has few, if any, resistance levels ahead. The only level nearby that might cause some selling pressure and profit-taking is the psychological number of $5,000. But that may not be enough to halt Ethereum’s movement. Ethereum’s oscillators point to a sustained driver higher.
The Composite Index is in neutral territory but has now crossed above both of its moving averages. That suggests any move higher by Ethereum is likely to be an honest move and one that could extend unimpeded. Likewise, the Relative Strength Index is not yet overbought. The only oscillator that could provide a warning of an upcoming pause in the trajectory of Ethereum price is the Optex Bands, which are near the upper extremes.
The bullish momentum could hit one major roadblock, and that is the gap between the current candlesticks and the Tenkan-Sen. Significant gaps do not last for very long between the candlesticks and the Tenkan-Sen. The further that Ethereum moves away from the Tenkan-Sen, the more immediate and the more violent the correction will be.
ETH/USD Daily Ichinmoku Chart
Bulls and bears should watch the daily volume bars for any hint of sustained drops in participation. The old technical analysis maxim, “volume precedes price,” could be a leading indicator of strong corrective move or trend change for Ethereum price.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
