The price of ether, ethereum’s native token, is on a roll.
Soon before press time, the ether-U.S. dollar (ETH/USD) exchange rate had reached a fresh all-time high of $444. As per CoinMarketCap, the world’s second largest cryptocurrency has appreciated by 11 percent in the last 24 hours.
Again, South Korean desks are firing on all cylinders. Volumes in the ETH/KRW pair offered by Bithumb, one of the largest cryptocurrency exchanges in the country, have gone up by 13.57 percent today.
The price action analysis indicates scope for a rally to $460-$470 levels in the short-term.
- The above chart shows a bull flag breakout, which is a continuation pattern – i.e. an upside break of the flag as seen above signals continuation of the rally.
- As per the measured-height method, a bull flag breakout has opened the doors for $480 levels (flag height added to the breakout level).
The chart above shows:
- The next major resistance is seen at $465.90 (127.2% Fibonacci extension).
- The relative strength index (RSI) shows overbought conditions.
The above chart shows:
- A bullish symmetrical triangle breakout. This is a continuation pattern – i.e. an upside break indicating the bull run has resumed. In ether’s case, it signifies that the rally from the lows near $10 has resumed.
- The RSI is close to the overbought territory, however, it is well short of the extreme overbought levels seen in June. Thus, there is plenty scope for a further rally in prices.
Ether looks set to test resistance levels of $465.90-$480 and could extend the rally to $500 levels in short-term.
Technical pullbacks, if any, are likely to be short-lived. Only a sustained move below the 10-day MA would signal the rally has run out of steam.
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