• Thu. May 23rd, 2024
  • ETH’s continuation chart setup might provide ‘buy’ opportunities on the 4-hour chart.
  • The leading altcoin recorded funding rate improvements within the previous week.

Ethereum surrendered nearly a third of its price during the mid-September reversal from the 6-month trend-line resistance. The subsequent slump beneath the 20 Exponential Moving Average, 50EMA, and 200EMA had Ethereum on a bearish track.

Meanwhile, the support of around $1.275 might cancel the potential bearishness. While writing these lines, Ethereum traded near $1,294.2.

ETH Saw Symmetrical Triangle, Breakout Imminent?

The latest price actions formed a symmetrical triangle pattern following a sharp decline in the 4hr timeframe. A symmetrical triangle serves as a continuation setup in most cases. As a result, a dip beneath the triangle’s lower timeframe might expose the token to a short-term drop before lift-offs.

This drop might welcome a retest of the initial massive support around the foothold at $1,240. That might see buyers striving for short-term rebounds. Moreover, the 20-50 Exponential Moving Average bearish cross triggered a minor selling edge.

A break beyond the Exponential Moving Average barriers and the triangle’s upper trend line might cancel the bearish inclinations. Such situations would have potential targets around the 200 Exponential Moving Average and $1,387.

The RSI (Relative Strength Index) displayed a slight bearish superiority following its drop beneath the equilibrium. Nevertheless, RSI’s lower troughs noted a bullish divergence with ETH’s price action. Meanwhile, the CMF (Chaikin Money Flow) maintained its position beyond zero, depicting a bullish bias.

Improved Funding Rates

The previous week saw Ethereum’s Binance funding rate turning positive to trigger surged bullishness within the futures market. The asses rate on FTX remained somewhat below the 0% level.

Continued tendencies to turn positive would see short-term sentiment supporting buyers to invalidate the bearishness. Lastly, market participants should check Bitcoin and its movements, as ETH shares a notable correlation with Bitcoin.

While writing this news, BTC traded with bearishness at $19,055.64. The bellwether crypto should climb beyond the obstacle at $20K to welcome near-term upsides. That would support upsides in the altcoin market, propelling Ethereum to its upward targets.

Stay tuned for the latest cryptocurrency news.

Barry Douglas

Barry Douglas

Barry Douglas, a seasoned online trading expert, enriches Big Trends Signals with his extensive industry experience, writing insightful guides and comprehensive reviews to assist traders navigate digital markets.

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