- 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.
said ecnomist Alex Kruger
Pre Berlin Hard Fork Rally Feels
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.
Related: Ethereum pumps 16% as Elon Musk claims he owns ETH, what’s next?
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).
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.
Related: Ethereum is looking at a 15% ETH crash according to this technical setup combo
Analysts, too, have voiced concerns about ETH printing a downside move in the near term.
I’m expecting a short-term top to be happening tomorrow on $ETH. Healthy correction after EIP-1559 before the heaviest bull run of them all happens.
observed Michaël van de Poppe
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”
