Ethereum New Swing Higher!

ETH/USD is bullish again after failing to close below a support area. Technically, a rebound is natural after the amazing sell-off. It has found strong support and now it has taken out a dynamic resistance.

It's trading at 2,422.06 versus 1,730 yesterday's low. Now is located right below a static resistance. Registering a valid breakout could signal broader growth. Ethereum dropped by more than 60% since May 12, 2021, but now, the rate seems poised to come back higher.


ETH/USD TURNED TO THE UPSIDE!
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I've told you in my previous analyses that the bias remains bearish as long as the price stays below the first warning line (wl1) of the descending pitchfork. ETH/USD has found support on the $1,930 level registering only a false breakdown through 1,800 psychological level and below the upper median line (uml).

Taking out the weekly pivot of 2,472.27 should indicate a potential growth towards 2,800 and 3,000 levels. Being rejected by the weekly pivot or registering only a false breakout could signal that ETH/USD may drop a little towards the 2,200 - 2,000 area.


ETHEREUM FORECAST!

The aggressive breakout through the warning line (wl1) signaled that the downside movement could be over. Still, we cannot exclude a temporary decline from the weekly pivot.

Actually, a temporary decline could help us to catch a new upwards momentum. Personally, I would like to see consolidation and other false breakdowns below the immediate support levels before really developing a new swing higher.




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Ralph Shedler
Analytical expert
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