Ethereum rebounds from near a key support zone
|ETH/USD traded higher yesterday, after it hit support slightly above the 2800 barrier, near the crossroads of the downside line taken from the peak of December 1st and the upside one drawn from the low of January 24th. As long as the crypto is trading above both those lines, we would consider the short-term outlook to be positive.
A clear break above the 3135 barrier could initially aim for the peak of February 10th, at 3265, where a break would confirm a forthcoming higher high and allow a test at the 3405 barrier, marked by the high of January 12th. Another break, above 3405, could carry larger bullish implications, perhaps setting the stage for advances towards the 3665 barrier, marked by the inside swing low of January 3rd. If the bulls are still willing to stay in the driver’s seat, we could see them climbing towards the peak of January 4th, at 3880.
Shifting attention to our short-term oscillators, we see that the RSI lies above 50, pointing up, while the MACD, although slightly negative, runs above its trigger line, and appears ready to obtain a positive sign very soon. Both indicators detect upside speed and support the notion for further advances in Ethereum.
In order to abandon the bullish case and start examining whether the bears are back in control, we would like to see a clear dip below 2577. This will take the crypto below both the aforementioned diagonal lines and may initially target the 2352 zone, which provided support on January 27th and 28th. Another break, below 2352, could extend the fall towards the low of January 24th, at 2150.
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