Lower high on D1 probes ETH bulls eyeing $2,000

  • ETH/USD snaps three-day losing streak following its bounce off $1,725.
  • Successful U-turn from 10-day SMA, rising channel formation test the immediate bearish signals.
  • Channel’s resistance line adds to the upside filters, MACD flashes warning to the buyers.

Ethereum is preparing for a bullish breakout while taking the bids near $1,795 amid the initial Tuesday. In doing so, the altcoin rises for the first time in the last four days while attacking the latest lower-high formation on the daily (D1) chart.

Although MACD flashes a bearish signal for the first time in two weeks, the quote’s ability to stay beyond 10-day SMA, also remaining strong inside an ascending trend channel from January 19, favors the ETH/USD bulls.

Hence, an upside break of the nearby resistance line, currently around $1,820, becomes imminent, which in turn will direct the buyers towards the record top marked during the month around $1,878.

It should, however, be noted that the ETH/USD upside past-$1,878 will be probed by the upper line of the stated channel, near $1,940, before directing the rally to the $2,000 threshold.

On the contrary, a downside break of a 10-day SMA level of $1,771 will be tamed by a confluence of 21-day SMA and the lower line of the aforementioned channel, at $1,614 now.

In a case where ETH/USD bears dominate past-$1,614, the $1,600 round-figure will offer an extra filter to the south before confirming the drop towards the monthly low of $1,271.

ETH/USD daily chart

Trend: Bullish

 



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