Simple Textbook Pattern: Ethereum on Verge of Upward Continuation
Ethereum has been on a remarkable recovery over the past few weeks.
In fact, just yesterday, the cryptocurrency shot to $190, which meant that it had retracted effectively 100 percent of the brutal “Black Thursday” crash, which saw ETH fall from $194 to a low of $90 in the span of 24 hours. This drop, which took place on Mar. 12, marked the asset’s second-worst daily performance ever.
Despite the already impressive performance, analysts expect Ethereum to head even higher in the coming weeks, citing a growing confluence of technical and fundamental factors.
Textbook Pattern: Ethereum Is Poised to Rocket Even Higher
The recent price action that has transpired since the June 2019 top has allowed Ethereum to print an extended broadening descending wedge on its weekly chart, a noted crypto analyst recently pointed out.
This is important to the bull case as broadening descending wedges are textbook bullish, as they more often than not end in a rally above the upper bound of the wedge. In the case of Ethereum, a break above the wedge is likely to lead to a rally to $290 at the very least.
It’s far from only that.
Popular crypto trader Hsaka remarked that the recent price action has allowed ETH to “break its pivotal $175-180 zone,” adding that historical moves around this price have always seen “substantial follow through.”
Indeed, when ETH finally broke past this region in January of this year, it quickly rallied towards $290, and once the zone was lost as support in November of last year, a rapid drop to $120 followed suit.
This was echoed by another trader, who suggested that he thinks Ethereum is in the midst of a “full retrace” of the bear trend that originated on Mar. 12, which would suggest ETH will return to the 2020 highs of $290 in the coming months.
$190 Must Be Held
Importantly, the recent price action hasn’t convinced 100% of traders that more upside is imminent.
Per previous reports from NewsBTC, analyst Calmly remarked that he thinks a weekly close above $190 “would make [him] feel confident that this is bullish price action and not just a bear market re-test,” but that he isn’t convinced just yet.
The chart specifies that historically, $180-$190 has been a crucial zone for Ethereum, with it acting as a launchpad for rallies. Furthermore, the cryptocurrency has often tested the zone as resistance on multiple occasions.
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