The price of ether, ethereum’s native token, is on a roll.
Soon before press time, the ether-U.S. dollar (ETH/USD) exchange rate had reached a fresh all-time high of $444. As per CoinMarketCap, the world’s second largest cryptocurrency has appreciated by 11 percent in the last 24 hours.
Total trading volume jumped to $1.845 billion yesterday – the highest since Sept. 15. A high volume rally indicates strong hands are at play and more records could be set over the weekend.
Again, South Korean desks are firing on all cylinders. Volumes in the ETH/KRW pair offered by Bithumb, one of the largest cryptocurrency exchanges in the country, have gone up by 13.57 percent today.
The price action analysis indicates scope for a rally to $460-$470 levels in the short-term.
1-hour chart
- The above chart shows a bull flag breakout, which is a continuation pattern – i.e. an upside break of the flag as seen above signals continuation of the rally.
- As per the measured-height method, a bull flag breakout has opened the doors for $480 levels (flag height added to the breakout level).
Daily chart
The chart above shows:
- The next major resistance is seen at $465.90 (127.2% Fibonacci extension).
- The relative strength index (RSI) shows overbought conditions.
Weekly chart
The above chart shows:
- A bullish symmetrical triangle breakout. This is a continuation pattern – i.e. an upside break indicating the bull run has resumed. In ether’s case, it signifies that the rally from the lows near $10 has resumed.
- The RSI is close to the overbought territory, however, it is well short of the extreme overbought levels seen in June. Thus, there is plenty scope for a further rally in prices.
View
Ether looks set to test resistance levels of $465.90-$480 and could extend the rally to $500 levels in short-term.
Technical pullbacks, if any, are likely to be short-lived. Only a sustained move below the 10-day MA would signal the rally has run out of steam.
Rollercoaster image via Shutterstock