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2 March 2024
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This Simple Pattern Suggests Ethereum Is Preparing For Another Leg Higher

Ethereum is showing positive signs and it traded to a new monthly high at $281 against the US Dollar. ETH price likely to continue higher as long as it is above $260.

  • Ethereum extended its rally above the $270 and $275 resistance levels.
  • The price traded to a new monthly high at $281 and it is currently correcting lower.
  • There is a new contracting triangle forming with resistance near $272 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to break to the upside and continue higher towards $280 and $288.

Ethereum Price Gaining Bullish Momentum

In the past few days, there was a steady increase in Ethereum above the $250 resistance against the US Dollar. ETH price settled above the $260 resistance and the 100 hourly simple moving average.

The recent upward move was such that ether price gained more than bitcoin, and climbed above the $270 resistance. It even spiked above the $280 level and traded to a new monthly high at $281.

It is currently correcting lower and trading below the $275 level. There was a break below the 23.6% Fib retracement level of the upward move from the $260 swing low $281 high. An immediate support is near the $270 level (the recent breakout zone).

Ethereum price trades above $270. Source: TradingView.com

There is also a new contracting triangle forming with resistance near $272 on the hourly chart of ETH/USD. The triangle support is close to the 50% Fib retracement level of the upward move from the $260 swing low $281 high.

On the upside, the price is facing a couple of minor barriers near the $275 level. A clear break above the $275 resistance may perhaps open the doors for a sharp increase towards the $280 and $288 levels. The next hurdle is seen near the $300 level.

Bearish Break in ETH?

On the downside, the triangle support is near the $268-$270 zone. If there is a downside break below $268, the price could continue to move down.

The next major support is near the $260 level (the pivot zone), below which the price is likely to accelerate lower towards the $250 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level.

Major Support Level – $268

Major Resistance Level – $275

Risk disclaimer: 76.4% of retail CFD accounts lose money.

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