The leading altcoin, Ethereum (ETH), was trading above the psychological $2K mark at press time, despite a slight 0.13% drop over the past 24 hours. This latest drop in the cryptocurrency’s price does not tell the full story, however, as its weekly performance was still well in the green at +5.12%.
Daily chart for ETH/USDT (Source: TradingView)
From a technical standpoint, ETH was able to break out of a short-term negative price channel that had formed on its charts over the past two weeks. This was after the altcoin bounced off of the $1,945 support level throughout the past 3 days. Following this rebound, ETH’s price surged more than 6%, allowing it to trade above the $2,065 barrier at press time.
Should ETH close today’s daily candle above this significant mark, it may have the foundation needed to rise to the next threshold at $2,300 in the following fortnight. Conversely, a daily close today below $2,065 could be followed by ETH’s price dropping to $1,945 in the short term.
Technical indicators on ETH’s daily chart supported a bullish scenario. Furthermore, they suggested an increase in bulls’ strength. The first indicator to take note of is the Relative Strength Index (RSI) indicator. At press time, the RSI line was looking to cross above the RSI Simple Moving Average (SMA) line.
Should these two lines cross, it would trigger a significant bullish technical flag. Traders may also react positively to this potential intersection, given that it is generally seen as a signal that bulls have gained the upper hand against sellers.
In addition to this, the MACD line was closing in on the MACD signal line. The MACD line rising above the Signal line may indicate a continuation of ETH’s positive trend, which may see the altcoin embark on its journey to $2,300.
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