Ethereum (ETH) – Broken the two-month-old bearish channel

Ethereum (ETH) – Broken the two-month-old bearish channel

Posted on Wednesday, February 9 2022 at 9:08 pm GMT+0000

The world’s second-largest cryptocurrency by market cap Ethereum (ETH) has stretched its last weeks’ rally above the two-month-old bearish channel.

The Ichimoku lines are indicating that positive forces are making efforts to take full control and the short-term oscillators are promoting further advances in the market. The MACD, north of the zero mark, is climbing above its trigger line, while the RSI is reinforcing its uptrend in the bullish region.

If the price sustains its current path, resistance could originate from the toughened 3,370 – 3,420 zone, shaped by the January 12th high and the Ichimoku cloud. From here, any additional gains may encourage buyers to navigate within the cloud to challenge the January 4th high at 3,900. Next, the December 22nd high at 4,160 will step under the spotlight.

On the other hand, if sellers regroup and drag the price back to the channel, initial downside friction could arise from the Ichimoku lines at 2,900 and 2,780 respectively, ahead of the 2,600 nearby low. Any violation at that point will strengthen negative forces towards the return line of the channel and the neighboring 2,160 key support from January 24th.

In brief, Ethereum is currently sustaining a bullish tone and a thrust beyond the 3,450 resistance boundary will further boost optimism that the current rally might hold on for longer.