Ethereum (ETH) is trading higher this Thursday (21), approaching its annual high of US$ 3,450.
Currently trading at $3,338, ETH has accumulated a daily appreciation of 7.3%. With that in mind, check out below what technical analysis has to say about the future movements of the second largest cryptocurrency on the market.
Ethereum breaks consolidation and soars
The 4-hour chart below shows that Ethereum managed to make the current jump by breaking above a consolidation pattern (white rectangle) that had been in place since November 13.
As you can see, the break of this pattern was accompanied by high volume, which legitimizes this movement.
Ethereum (ETH) chart on TradingView
With this, ETH now has a clear path to reach its annual high, and may even surpass it. However, short-term technical indicators are mixed.
On the bullish side, the 9-period exponential moving average (EMA) (blue) on the 1-hour chart has crossed above the 21-period EMA (orange). This crossover is a great sign as it shows that the short-term trend is bullish.
On the other hand, the Relative Strength Index (RSI) is well above the 70 threshold, indicating that the asset is overbought. This shows saturation on the part of sellers, which could cause the cryptocurrency’s price to correct before reaching a new yearly high.
If that happens, the resistance zone of the consolidation pattern at $3,240 should act as support.
The article Ethereum (ETH) Forecast: How Can the Price Behave Today? was first seen on BeInCrypto Brazil.
