Home Cryptocurrency Ethereum Ethereum (ETH) Price Analysis: Bulls Slowly Gaining Traction

Ethereum (ETH) Price Analysis: Bulls Slowly Gaining Traction

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Ethereum bulls appear to be defending the near-term support and may resume the climb.

Ethereum has formed higher lows and higher highs to trade inside an ascending channel on its 1-hour chart. Price has pulled back from the recent rallies to test support and appears to be encountering some bullish energy.

If the channel bottom continues to hold, Ethereum could be able to bounce back to the upside targets marked by the Fib extension levels. The 38.2% extension is in line with the mid-channel area of interest at $475 and the 50% extension is slightly above it at $480. The 61.8% extension lines up with the swing high around $485 and the 78.6% extension is around the channel top at $490. The full extension is at the $500 major psychological level.

RSI is already indicating oversold conditions or that sellers are feeling exhausted and ready to let bulls take over. Similarly, stochastic has reached the oversold region and looks ready to turn higher, so Ethereum might follow suit.

Cryptocurrencies have had a good run for the first half of the week as the positive sentiment from the previous one has carried on. However, profit-taking came into play on a number of factors, including the SEC decision on the bitcoin ETF and the expiry of CME bitcoin futures that may have spurred pullbacks in the industry.

Besides, the dollar has been able to flex some muscle on positive expectations for the advance Q2 GDP release this week. Trump hinted that it could come in at 4.8% which would be more than twice the previous reading and still significantly higher than market expectations.

Traders have also turned some attention back to traditional markets like stocks and commodities as strong gains were posted on news of the trade truce between the EU and the US. Cryptocurrency investors might now hold out for another set of catalysts to see if the rallies can be sustained.

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