- Ethereum has recovered over twenty percent of its value from the lows of August
- The ETH / USD pair has now turned bullish over the short-term
- The $205.00 level is the next major upside technical challenge for the cryptocurrency
Ethereum has made a much-awaited advance back towards the $200.00 resistance level, with the second-largest cryptocurrency reclaiming twenty percent of its value from the worst trading levels of August. More encouraging for Ethereum bulls is the fact that the cryptocurrency has now turned technically bullish over the short-term.
Over the weekend, almost the entire altcoin space enjoyed a fresh wave of technical buying interest, sending the ETH / USD pair firmly back above its 200-period moving average on the four-hour time frame for the first-time since early July. The ETH / USD pair now faces an impending test of its 200-day moving average, around the $205.00 level.
The lack of appetite to take the ETH / USD below the $160.00 level and the wide-spread recovery in the altcoin space is certainly encouraging for Ethereum over the short and medium-term. Several key technicals are now flagging the $235.00 to $240.00 area as the next major upside target for the cryptocurrency.
The four-hour time frame is showing that an inverted head and shoulders pattern is starting to take shape, while an even larger inverted head and shoulders pattern has the potential to form if bulls can eventually rally the ETH / USD pair towards the $235.00 level.
Dual trendline resistance on the daily time frame is strongly suggesting that if the ETH / USD pair can break through the $235.00 level then the cryptocurrency could surge back towards the $300.00 technical level. In the immediate term, bulls face and impending challenge stabilizing the ETH / USD pair above the $205.00 level.
It is absolutely critical that bulls maintain the bullish momentum going forward by keeping price above the $182.00 level, which represents former resistance now turned key support and the ETH / USD pair’s 200-period moving average on the four-hour time frame.
According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Ethereum is extremely bullish, at 75.00 %, while the overall long-term sentiment towards the cryptocurrency is largely neutral, at 47.80%.
The four-hour time frame is showing that the $205.00 level is the main technical barrier and the near-term bullish target for the ETH / USD pair. It is worth noting that mild profit taking could occur from this level.
The daily time frame highlights the ETH / USD pair’s 200-day moving average as key, once above this level the cryptocurrency has very limited technical resistance until the $235.00 level.
The four-hour time frame is showing that the ETH / USD pair is currently trading above its 50-period and 200-period moving averages on the four-hour time frame. The breakout above these two key moving averages effectively highlights the new-found short-term bullish sentiment towards the ETH / USD pair.
The daily time frame is showing that the ETH / USD pair may come under technical selling pressure if price dips below the $182.00 level for a sustained period. The $170.00 and $163.50 levels are the key technical support levels to watch below if a bearish break occurs.
Ethereum has finally made a break to the upside, with the $205.00 level the key resistance area that bulls need to break in order to sustain the recent move higher.
Only a sustained drop below the $182.00 level can hurt the ETH / USD pair’s upside potential over the short and medium-term.
Check out our introductory guide to Ethereum.
Credit: Source link