ETH/USD shot up by almost 12% in the last 24 hours
The rally mirrors Ether’s pre-Berlin hard fork price run
ETH is trading within an ascending channel formation with overbought RSI readings
JAIPUR (Coinchapter.com) – Ethereum’s upcoming blockchain upgrade has spurred bullish action across ETH markets. Ether buyers entered long positions en-masse and pumped prices up by 12% in the last 24 hours. The rally catapulted the ETH/USD exchange rate from local lows at $2,450 to $2,772.
Bullish comments poured in from across the community.
If you sold $ETH under $2000 because “2021 is a replay of 2018 and price will crash much lower”, please know the market thanks you for your sacrifice and expects you to buy back at the top.
Ether’s recent run-up is the spitting image of the bullish move that led it to officially break into the $2,000s and $2,500s club before the Berlin hard fork. Then, ETH wallowed in a bearish setup before lifting off the local bottom 15 days before the stated upgrade. Finally, a near 40% upside move from $1,540 (on March 24) led ETH/USD to tap $2,554 on the day of the Berlin hard fork on April 15.
The current rally began after Ether logged the $1,719 bottom on July 20. Then, in the B-Word conference, Elon Musk’s ETH ownership declaration galvanized bulls to pull the ETH/USD spot pair to $2,660 on August 1.
Soon after, the blockchain asset suffered a drawdown (owing to the downside break from the ascending channel setup). But buyers gathered back the strength and renewed the bullish momentum to push ETH to $2,772. Precisely 15 days after the $1,719 bottom.
Similarities in ETH/USD Correction
While there are similarities in rallies, investors should be prepared for what comes later. The Berlin hard fork hysteria fizzled out with bears assuming control of ETH’s market after the rally. Ether logged 23% losses with a drop from $2,559 to 1,978 on April 18 on the back of overbought conditions. Relative strength index (RSI) readings clocked above 70 (74.24 to be precise).
ETH/USD trading within bearish pennant formation in pre-Berlin hard fork rally, Source: ETHUSD On TradingView.com
Ether bulls attempted a recovery to $2,650, but a significant run-up only resumed from April 23 after a drop from the said local high to $2,033.
ETH stands to undergo a course correction in the current technical setup as well. RSI numbers point to overbought conditions. Combining that with the bear flag setup (in which Ethereum’s native cryptocurrency is trading since July 20) indicates loss-laced sessions ahead.
In the said scenario, the ETH/USD exchange rate is highly likely to retract back to the 78.6% ($2,547) and 61.8% ($2,369) Fibonacci extension levels. A drop to the former would result in 8% losses. But if ETH dropping to the latter price or below would amount to a 15% correction.
But a few of them are still optimistic about Ether out-performing Bitcoin in the long run.
Sure there might be a good EIP-1559 dump on $ETH but it imo will still out-perform $BTC and be the focus of my trading. The dips will be strong buys as things stand.
said Twitter-based analyst whoc goes by the name of “Pentoshi”
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
Note: Binance has relisted LUNA and UST tokens YEREVAN (CoinChapter.com) – Terra, the algorithmic stablecoin issuance platform that ranked...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.