Ethereum price spikes to a new yearly high at $447 following Bitcoin (BTC) surge to $12,492.
Ether bulls are trying to build on the support established at $430 following the impact of a double-top pattern.
Ethereum price action in the last two days has been building on the support established above $410. Although there was a struggle to hold above $420, Bitcoin price breakout to highs of $12,492 carried the entire market upwards including ETH. The second-largest cryptocurrency by market capitalization rose to trade new yearly highs at $447. Recently, the crypto hit a high around $445 but crumbled to the support at $410 as sellers rushed in for revenge.
The hurdle at $450 led to the formation of a near-perfect double-top pattern. The impact such as a pattern usually leads to a reversal from the highs traded. In the same way, Ether plunged to seek (maybe to confirm) support at $430 before buyers plan the next run-up eyeing $500.
At the time of writing, Ethereum is trading at $432. A weak recovery is underway with bulls holding tightly to the support provided by the both the 100 SMA and the 50 SMA in the 1-hour range.
From a technical perspective, Ethereum is likely to take up sideways trading especially with the RSI holding above 45 and correcting towards the midline. The MACD is also holding well above the mean line (0.00). However, the minor bearish divergence hints that selling pressure is creeping in.
It is apparent that support at $430 aided by the aforementioned moving averages is key for gains towards $450. In addition, the growth in the DeFi ecosystem has kept interest in ETH on the roof over the last few months. Ethereum community is also looking forward to the launch of ETH 2.0. Many analyst believe that the protocol’s launch would propel Ethereum to levels beyond $1,000.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org