ETH/USD exchange rate moved up after dumping 10% from $3,200
The recent rally is a breakout from a bullish pennant setup since May
Sustained pressure could lead Ether to $3257
JAIPUR (Coinchapter.com) – Ethereum’s recently concluded blockchain upgrade redefined the platform’s economic model, as well as brought back the pre-May crash bulls.
Long-term investors bought ETH/USD’s 10% dip from $3,200 to $2,889 to push prices back above $3,000 to $3,145 on Monday. The same reinstated the bullish sentiment that seemed dampened on Sunday.
Analysts are now calling for a rally to $10,000.
“You probably don’t want to be stuck in NFTs when $ETH heads to $10,000… Especially not a JPEG of a rock,”
said Twitter-based crypto trader and technical analyst going by the handle name – “TheCryptoCactus”
The spot pair’s ongoing rally translates to a breakout from the declining trend after falling from all-time highs near $4400. And the decline itself translates to a bullish pennant pattern setup.
Ethereum Technical Setup
Ether buyers attempted several recoveries during the downtrend, but all bullish reversals faced bearish drawdowns. The ETH/USD exchange rate tested the pennant’s bottom on several occasions until the B-word conference on July 20. Elon Musk’s ETH ownership admission was enough to get buyers back in action.
Akin to the second-largest cryptocurrency’s reprisal 20 days before the Berlin hard fork on April 15, ETH/USD’s bullish trajectory took shape on July 20 and culminated with the pair hitting $2,884 on the day of the London hard fork.
The Ethereum underpinning asset is doing rounds above $3,100 as of writing. But there’s more to the upside than meets the eye. ETH/USD lost approximately $1,200 in a cascading series of drops during the May 19 crash. The same becomes the yardstick (pennant structure depth) of upside calculation in the ongoing rebound.
Upon adding $1,208 to the launchpad of the breakout at $2,049, the upside target works out to be $3,257, implying that the ETH/USD pair still has to scale up to higher by 4.5% to justify the calculation.
Once Ether bulls flip $3257 into support, the road to $3,500 would be a smooth ride. And in case the said scenario doesn’t work out and sellers take over, we are looking at a retest of the $2,800-2,900 range again.
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.
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