- ETHUSD pair is in consolidation mode, ready to ride the recovery wave
- Ethereum’s native crypto token flew to $2088, further rally on cards
- The second-largest cryptocurrency is trading at undervalued prices
In Consolidation, Ready For Liftoff
Jaipur (CoinChapter.com) — The ETH/USD pair retested the $1700-$1750 support range second-time last week, one month after the May 19 free fall. It was in earnest a result of Chinese cryptocurrency miners clearing out from their home turfs due to draconian government measures.
But now, with significant retracement in prices, amid rampant selloffs, Ether seems to have found a floor. The week post, the recent price slide has been a period of consolidation with a concentration on bullish indicators. Although bears tried to push prices down again, the support range held firm at the low $1,700 levels. Bulls bought the dip en-masse, setting the scene for a significant upward correction.
RESEARCH 24/7, who goes by the handle “smallcappick” on Twitter, shared a similar observation in the latest tweet.
“Ethereum price is surfing on the recovery wave. After the dip, ETH is in consolidation and looks ready for the break higher,”he said.
ETH broke past and above the critical 20-day exponential moving average (EMA) wave and is trading well above the 50-day moving average (MA) wave as well.
ETH Looking To Chart Higher Highs
Although RESEARCH 24/7 predicted a short-term upside target of $2,045, bulls pushed past the said price level to $2,088 before tempering again. As a result, ETH/USD spot rates have dipped slightly, but the trend remains positive as buying pressure increases.
After a bearish double-top, Ethereum’s token formed a classic bull flag on the 4-h chart. That subsequently led to a massive breakout (seen from the large green candle), presenting opportunities for buyers to keep the momentum on and aim to reclaim the resistance near the $21,60 price level (marked by the 100 MA wave).
If ETH/USD prints green candles to $2160, $2270 will be well within attainable limits for bulls.
According to on-chain information, metrics, and market insight provider, Santiment, Ether is in a ‘slight undervalued spot’ right now. Furthermore, due to towering FUD (fear, uncertainty, and doubt), the Ethereum native token’s social media sentiment is at an all-time low.
This Santiment said is a decent gauge for buyers to enter long positions, something which falls in line with what legendary investor Warren Buffett once said – “Be fearful when others are greedy, and greedy when others are fearful.”
Apart from this, buyers should also take into account Ethereum’s network fees at the moment. Historically low numbers suggest greater ease in the movement of coins, which is a pretty bullish indicator in itself.