ETH/USD skyrocketed yesterday, breaking above the 248 key hurdle, which acted as the upper bound of the sideways range that contained most of the price action since May 31st. Given that the move confirmed a forthcoming higher high on both the 4-hour and daily charts, we would consider the near-term outlook of this crypto to have turned positive.
At the time of writing, the price is trading around the 264 zone, which provided decent resistance back on February 25th. If the bulls find the strength to overcome that barrier soon, we may see Ethereum climbing towards the peak of the day before, at around 278. Another break, above 278, could extend the rally towards the 286 area, marked as a resistance by the high of February 19th.
Shifting attention to our short-term momentum studies, we see that the RSI, already above its 70 line, has ticked up again, while the MACD lies above both its zero and trigger lines, pointing north as well. Both indicators detect strong upside speed and support the notion for further advances in this cryptocurrency.
On the downside, we would like to see a clear dip back below 241 before we abandon the bullish case. Such a move may confirm the price’s return within the pre-mentioned range, and may initially allow declines towards the 231 area. If that area is not able to halt the slide, its break may see scope for extensions towards the lower end of the range, at 220.
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