Ethereum (ETH) has shown signs of recovery, rising to $1,645 after a poor Q1. A symmetrical triangle on the 2-hour chart hints at a bullish breakout if it closes above $1,690. With the TD Sequential indicator signalling a trend reversal and institutional interest evident, ETH could reach targets of $1,747 or $1,817. A cautious but strategic trading approach is recommended.
Ethereum (ETH) is recovering after the worst first quarter in five years, bouncing back from $1,400 to $1,645 with a 3% weekly gain. Although global macroeconomic concerns and crypto ETF outflows have hampered sentiment, recent technical indicators suggest a possible trend reversal is underway. A symmetrical triangle formation on the 2-hour chart implies a significant price movement may occur soon.
For a positive breakout, ETH needs to close above $1,690. Achieving this could enable it to reach target resistance levels of $1,747 or potentially $1,817, which precedes a move towards $1,900. The TD Sequential indicator, known for indicating trend reversals, has flashed a “9” on the weekly chart, suggesting bullish momentum may be emerging as downward pressure lessens.
In support of this bullish outlook, ETH’s Relative Strength Index (RSI) is currently above 55 and not in overbought territory, while candlestick patterns indicate diminishing selling pressure. Additionally, a significant market player has positioned $12.6 million in long ETH, signalling institutional confidence in a short-term rally.
Traders should monitor ETH’s ability to maintain its position above the trendline and 50-day Exponential Moving Average (EMA) at $1,616, as this will enhance the likelihood of a breakout. Recommended trade actions include:
– Entry: Buy above $1,692 after observing a confirmed breakout
– Target: Aim for $1,747 or $1,817
– Stop Loss: Set at $1,610.
In summary, ETH is demonstrating signs of recovery. While $1,900 is ambitious at this juncture, a clean close above $1,690 could set the stage for reaching $1,817. Traders are advised to act promptly, favouring high trading volumes while managing their risk effectively.
