Ethereum
The Ethereum price remains within the confines of a rising flag pattern. And despite failing to clear $3,400, ETH cannot be counted out just yet. In fairness, the price does appear to be rolling over from the highs, but it is by no means breaking down. Traders can view the recent price action either bullish, bearish or neutral, and until ETH/USD breaks out, it may prove to be any of the above.
After the crazy ride this year, it’s only natural that traders are nervous. The collapse in May has left many with scars that won’t heal for a long time to come. And as Bitcoin slides below support, some are wondering if Ethereum will do the same. However, I am in the bull camp and view ETH’s consolidation above $3,000 as constructive. For sure, parabolic rallies are great, but they very rarely last, and as was the case in May, often implode. And therefore, I am much more encouraged to see the Ethereum price taking a break and charging the batteries before mounting the next attempt at the May highs.
Since hurdling resistance at $2,900, ETH has been trending higher. Although the rate of the rally has certainly slowed, the price is making higher highs and higher lows. This is encouraging and suggests buyers are emerging at an increasingly higher level.
As a result of recent consolidation, ETH has retreated from its previouss overbought condition, and the Relative Strength Index has cooled from 80.62 to its current reading of 53.85. Furthermore, the indicator is levelling off and may soon turn higher.
below the market, trend channel support is seen around $3,020 and below that, the former resistance at $2,900 follows.
Above the price, the logical first resistance level is the top end of the rising channel at $3,420. And should the Ethereum price clear that, the all-time high beckons. I maintain a positive outlook for ETH as long as the $2,900 support holds. However, a close below this level will cancel the bullish view.
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