Ethereum Continues to Drift North

ETH/USD rallied over the weekend, resulting in a positive gap on our chart. Then, after this week’s opening, the crypto traded in a consolidative manner near the 2635 zone, which provided resistance on June 15^th. Overall, Ethereum is trading above the upside support line drawn from the low of July 20^th, as well as above the prior downside resistance line taken from the peak of June 3^rd. In our view, all this paints a positive short-term picture.

Even if the price corrects a bit lower, we see decent chances for the bulls to take charge again from near the aforementioned short-term upside line and perhaps push the action back above the 2635 barrier. This will confirm a forthcoming higher high and may see scope for bullish extensions towards the 2840 zone, marked by the high of June 7^th, or the 2910 area, defined as a resistance by the peak of May 26^th.

Taking a look at our short-term oscillators, we see that the RSI turned down and exited its above-70 zone, while the MACD, although above both its zero and trigger lines, shows signs of topping as well. Both indicators detect slowing upside speed, which enhances our view that a small retreat may occur before the next leg north.

Now, in order to abandon the bullish case, we would like to see a dip below 2310, which is the low of July 30^th. The crypto would already be below the upside line taken from the low of July 20^th, and may fall towards the low of July 27^th, at 2150, or the high of July 23^rd, at 2095. If neither territory is able to stop the bears, then we may see declines towards the 1990 zone, marked as a support by the low of that day.

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