Bitcoin recently hit new highs of $7,000 and altcoins are beginning to follow after several days of depreciation. One of those coins, ethereum, has managed to surge 16 percent over the last 24-hours.
On the 1-day chart, multiple technical patterns are forming which could predict an upcoming major breakout.
On May 7, 2019, ethereum had a golden cross formed on the 1-day chart when the 100-day moving average crossed above the 200-day moving average. According to Investopedia, this pattern is seen by many traders as the most definitive and strong buy signals that could start a long-term bull market.
The last time this bullish breakout pattern developed on ETH’s 1-day chart was on Mar. 13, 2017, and it was followed by a 5,800 percent upward move that lasted almost a year.
A support level is a price point where the market valuation is more likely to bounce off as it falls while a resistance level is a price point where the price tends to be rejected as it rises. These levels can be predetermined by multiple touches of the same price based on historical data.
On ether’s 1-day chart, it seems there is an important resistance level around $191, which is the price range the cryptocurrency is trading at the moment. If this level is broken to the upside, ETH could rise to the next resistance points which are $250, $380 and $520. Once a resistance level is broken, it becomes a support point and the same happens in the opposite direction.
What price do you think Ethereum will be at by Q4 2019?