Ethereum at Risk Near-term as Prices Rally to Fresh Monthly Highs
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ETH/USD Daily Chart (Log-Scale)
Technical Outlook: Ethereum prices broke above basic trendline resistance extending off the yearly highs with the rally now approaching more significant resistance at the confluence of the 100% ext and the 61.8% retracement at 302/14. While our broader outlook remains weighted to the topside, the immediate advance is at risk while below this threshold. Interim support rests at 262/70 with broader bullish invalidation set along the trendline extending off the July lows, currently ~237.
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ETH/USD 240min Chart
Notes: A closer look at price action highlights this week’s reversal off confluence resistance at the 100% ext at 314. Ethereum has continued to trade within the confines of an ascending pitchfork formation extending off the July lows with our focus weighted to the topside while in this formation.
Look for interim support along the median-line with the focus higher while above 269/73. A breach of the highs targets the upper median-line parallel which converges on the 78.6% retracement at 347.From a trading standpoint, I’d be looking for a pullback here to ultimately offer more favorable long entries.
Relevant Data Releases
Other Setups in Play:
– Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at email@example.com.