Disclaimer: The conclusions of the following analysis are the sole opinion of the author and should not be considered investment advice.
Ethereum [ETH] It registered a rise of over 24% over the past two weeks, after making a U-turn from its two-month support around the $1,442-zone. Coinciding with the upper trend line of the $1,790-resistance up-channel (Yellow), King Alt is likely to face near-term hurdles in the coming sessions.
However, given the readiness of Ethereum to merge after the successful completion of the shadow fork, the broader sentiment of the coin could improve.
At press time, ETH is trading at $1,767.1, up 2.7% over the past 24 hours.
ETH daily chart
ETH renewed its bullish strength after reviving from the break of its expected falling wedge. The altcoin’s growth over the past two weeks has helped the bulls test the limits of their supply zone at the $1,790-zone.
This buyback is now facing resistance near the upper boundary of the ascending channel. With the confluence of this range and the $1,790 resistance, ETH could see a slight rejection of higher prices from an immediate resistance.
Nevertheless, the upper band Bollinger Bands (BB) continued to look north. Any close above the upper band would confirm the possibility of a volatile breakout in the coming sessions.
It could induce an extended decline above the $1,790 resistance level. In this case, possible targets would be in the range of $1,907-1,993. On the other hand, a break below the $1,703-support could pave the way for a near-term pulldown towards the $1,648-zone.
argument
The Relative Strength Index (RSI) eventually found a sustained close beyond equilibrium to reflect a strong buying edge. A sustained position above this level will help buyers maintain their gains.
In addition, the Awesome Oscillator (AO) saw higher peaks as it approached the zero-mark. A close above this mark will signal a buy. However, the ADX revealed a fairly weak directional trend for the largest alts.
conclusion
The anticipation of the merger may help fuel the relatively bullish sentiment in the market. Buyers should wait for a close above the $1,790-resistance to confirm their bias. The goals will remain the same as discussed above.
Lastly, investors/traders should keep an eye on bitcoin [BTC] motion. This is because ETH shares 92% of the 30-day correlation with King Coin.