This week alone, ETH managed to test the psychological barrier of $2550 twice, and today, it finally surpassed that resistance to record an ATH of $2601.
However, this recent price surge is not followed by massive volume, which states that a smaller demand drives its latest ATH.
On evaluating the daily chart, we can see that ETH had broken out from an ascending triangle pattern at the beginning of this month.
Nonetheless, the breakout was not chased by excessive volume. Along with that, ETH is moving inside two channels, out of which one is inner, and the other is the main one.
This digital asset has been forming a double bottom pattern in the main channel, which is followed by a breakout above the inner channel.
Considering that, ETH will probably continue to hike until $2700 and witness a pullback that will plunge it back to the resistance level of $2550. Confirming this resistance as support will stimulate ETH into forming higher ATHs.
A double bearish divergence can cause a minor pullback in the short term
On zooming into the 4-hour time frame, our price action differs from above, but the assumption that ETH will hike before it forms a minor pullback remains intact. At this moment, ETH is giving strong signals of double bearish divergence, which can be confirmed with the price action making higher highs and RSI is making a higher low. If the ETH price fails to sustain above the resistance trend line, there is a strong chance it will allow the EMAs to retest as support.
Presently, the price of this asset is hovering above the critical EMA lines. The 20 EMA proved itself as a major support level and is likely to retest again in case of bearishness. A dip below the 20 EMA will expose the 50 and 100 EMA at the levels $2266 and $2151, respectively.
The RSI of this asset is in the range of 65 and is extremely close to stepping its foot in the overbought territory.
CONCLUSION: ETH, the second-largest cryptocurrency, is currently undergoing a massive bull run. With this current surge, investors have already started eyeing the psychological level of 2998 (FIB 1.68). Most of the indicators are giving bullish signals, and the super trend indicators have flashed a buy signal on the four-hour chart.
SUPPORT : $2052 and $2321
RESISTANCE : $2550 and $2601
