- Ethereum price has consolidated further in a pennant structure since mid-May.
- ETH price is set to perform a bullish breakout as an ascending trend line supports.
- Expect a jump above $2,148.67 and rally up towards $2,300.
Ethereum (ETH) price is set to jump 18% in value if a tailwind persists throughout the trading day. Although the ASIA PAC session saw some dark clouds forming over disappointment at the Chinese government’s support package and this pushed Asian shares to the downside, cryptocurrencies saw traders locking in gains after the sudden drop on the Snapchat earnings warning after the US close. Investors can now expect to see another leg higher with a break above $2,148.67 and a rally towards the end of the week to $2,300, returning 18% in value.
ETH price sees bulls fretting about a comeback
Ethereum price sees bulls fed up with the current downtrend that has been unfolding over a couple of months now. The Relative Strength Index (RSI) is slowly but surely trading away from the oversold barrier as bulls and investors return to cryptocurrencies, an asset class where you want to be when a rise in risk assets is announcing itself. It looks like it will be a hot summer for cryptocurrencies as markets are getting accustomed to the current market elements driving prices and, as this coincides with the waning dollar strength seen over recent days.
ETH price is therefore set to cover quite a lot of ground and could rally towards $3,000, but for now, the focus in the short-term will be on a pennant breakout set to happen in the coming days with a pop towards $2,148.67 on the cards, which is the first nearby resistance to be taken into account. With the RSI still low, expect more upside room to be opened towards $2,300, which is above an interesting intermediary level above $2,278.42 from June of last year.
ETH/USD daily chart
Risk to the downside may materialise if the break to the upside proves false, and traps bulls between $2,148.67 and the pennant. That could then lead to bulls being squashed against $1,928.89, triggering a possible flash crash towards $1,688.39, the low of May 12. That push would probably be a synchronised move with most cryptocurrencies showing the same pattern.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.