Chart of the week – Ethereum (ETH/USD)
Impulsive up move remains intact
Short-term technical analysis
Source: CMC Markets
- After a tumble of close to -60% from its 4,377 current all-time high printed on 12 May to a low of 1,700 on 22 June, Ethereum (ETH/USD) has formed a potential medium-term basing formation from its recent swing lows of 22 June and 20 July which suggests it is in the process of evolving into another potential multi-month impulsive up move sequence that may see a fresh all-time high.
- Since its 20 July low, the price actions of ETH/USD have evolved within an ascending channel with the lower boundary of the ascending channel now acting as a support at 2,860 which confluences with the former significant range resistance from 19 May to 7 June.
- The 4-hour Relative Strength Index (RSI) has remained in a bullish configuration above its significant corresponding support at the 45% level which indicates that short to medium-term upside momentum is likely to be intact.
- Watch the 2,860 key short-term pivotal support for a further potential up move to target the next immediate resistance at 3,570in the first step (upper boundary of the ascending channel, swing high areas of 17 May/18 May & a cluster of Fibonacci expansion levels).
- On the other hand, a 4-hour close below 2,860 negates the bullish tone for a deeper setback to retest the 2,380 key medium-term pivotal support which is also close to the 61.8% Fibonacci retracement of the on-going medium-term impulsive up move from 20 July low to the week of 9 August high).
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