ETH-USD Breaks Range, Eyeing Upside

Updated February 28, 2023 at 7:28 am

Markets

ETH-USD has broken out of the range after trading sideways between $10.80 and $11.30 for the past week or so. On the Kraken exchange, ether is up almost 2 percent today against the US Dollar, with the price at $11.50 a the time of writing. A daily close above $11.41 will give strong confirmation of bullish momentum and will see a longer-term appreciation.

The chart below shows the 4-hour price action for ETH-USD and illustrates the breakout of the previous range. This suggests that buyers are dominating now and stronger upward momentum should be anticipated. Several bullish signals are shown below; firstly, the price action has broken above the Ichimoku cloud suggesting an upward trend is only starting.

Also, the conversion (blue) line is starting to trend at a steeper angle, suggesting strong bullish momentum is in play at present. Finally, after the Ichimoku cloud has not trended in any direction for the past week or so, however, now the cloud is starting to trend upward, foretelling further gains in ETH-USD.

The Awesome Oscillator also indicates strong bullish momentum as the bars have started to trend higher and the value has turned from negative to positive. Therefore, in the medium term, we should see a test of the previous highs around $12.50.

The chart below shows the daily price action, with ETH-USD contained within the Ichimoku cloud. The market is currently testing the resistance provided by the base (red) line at $11.41 and a close above this level today will point to more gains ahead for ether. Moreover, we look to anticipate a bullish breakout from the Ichimoku cloud which will provide further bullish confirmation.

The chart below shows the daily Renko chart for ETH-USD and shows a bullish breakout is likely to materialize. Once ETH-USD is able to reach $11.76576, we should see the upward trend intensify and continue. This will indicate the formation of a bullish Renko candle and point to further gains ahead, with ETH-USD likely to push as high as $14-$15.

While ether is up against both the US Dollar and bitcoin today, Ethereum Classic has continued its downward momentum, currently down around 6% against the US Dollar today. The chart below shows that ETC-USD has broken below the 50 percent level of the first bullish daily candlestick, suggesting the next support is found at $1.00, the base of this candlestick. Volume has fallen with the price suggesting that Ethereum Classic will head below the $1.00 handle. A move above $1.34 is required to validate a bullish outlook for ETC-USD.