Ethereum dipped twice under $2,000 in May amid the bears’ showdown. The declines extended from an all-time high of $4,400 while bulls failed to secure higher support, culminating in the downswing to $1,750.
In the wake of the bearish price action, Ethereum lifted above $2,000 and closed the gap toward $3,000. However, seller congestion at $2,900 coupled with a generally down-trending crypto market forced ETH to revisit levels slightly above $2,100 toward the end of last week.
Trading in the new week has already yielded considerably for Ether, allowing bulls to pull the price north. The hurdle at $2,700 has been tested but not broken. Also contributing to the seller congestion is the 100 Simple Moving Average (SMA) on the four-hour chart.
Ethereum bullish technical pattern breakout lingers
Despite the frequent rejections, disallowing the liftoff to levels above $3,000, ETH appears to be forming a higher low pattern. The relatively equal peaks have created a highly bullish ascending triangle on the upside.
A breakout is anticipated as soon as the price cracks the x-axis resistance. Note that triangles tend to have precise targets measured from the highest to lowest points. For instance, Ethereum might swing 36% higher from the hurdle at $2,900 and touch highs of $4,000.
ETH/USD four-hour chart
ETH/USD price chart by Tradingview
At the time of writing, Ether trades at $2,640 and is held between the 100 SMA and the 50 SMA. The immediate support at the 50 SMA must maintain to ensure that bulls focus on gains above $2,700. Moreover, a break above $2,900 (x-axis) is required to form the foundation of the uptrend to $4,000.
Ethereum intraday levels
Spot rate: $2,640
Trend: Short-term bullish biased
Support: the 50 SMA, $2,300 and $2,000
Resistance: The 100 SMA and $2,900
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