Ethereum short-term price analysis: 24 August
Ethereum’s recent decline seems to be in recovery considering the coin’s 5.3% surge in the last 24 hours. This surge comes as the price breaks out of a bullish pattern. This has larger implications of a potential surge ranging between 9% and 11%.
Ethereum four-hour chart
The chart showed ethereum’s descending parallel channel coming to an end with a successful breakout heading north. This breakout is important since the price has broken a confluence of resistance. The first is the sloping line that prevented the price from breaking out of the channel, the second was 50 DMA [yellow] and horizontal resistance at $400.
Hence, this breakout is a good sign of the buyers; however, a test of the horizontal resistance at $400 [which is now support] can be expected but if the price closes above 50 DMA, then this push could be bullish.
The initial target can range anywhere from $415 [4% surge from the support at $400] to $444.27 – the second target and resistance, which is an 11% surge from the same support.
Additionally, supporting this bullish scenario are RSI and OBV indicators. RSI indicator showed a breakout of a similar down-channel. The breakout of RSI from this pattern showed an increase in buyer activity which is well above 50.
OBV indicator showed a similar breach of the sloping resistance, which indicated legitimate buyer activity with a higher volume. Hence, it is natural to expect the price to catch up to buy volume.
Last but not the least, the price has also breached 200 DMA, arriving at its current position. Add that to the bullish indicators, ETH has the potential to surge even higher than the above-mentioned targets.
Another extremely bullish opportunity is as shown below, however, this is meant to be taken with a grain of salt, and a highly optimistic viewpoint.