ETH Retests Support: Bulls Eye Next Move

In today’s technical analysis, let’s focus on Ethereum.

Ethereum has finally broken free from the sideways consolidation that had been restricting its movement since the end of August. That consolidation, marked by the orange rectangle, was broken to the upside on September 12th, giving bulls their first real shot at regaining control. Now the story is about whether this breakout can hold. The former resistance of the rectangle is being retested as support, and so far buyers are responding well. Lower wicks on the candles suggest demand is stepping in each time sellers try to push the price back down.

Still, it’s too early to declare a full bullish victory. For confirmation, traders should watch the blue dynamic downtrend line. A breakout above that would be the real green light for a stronger bullish continuation. On the other hand, if Ethereum slips back and closes an H4 candle inside the rectangle, it would signal weakness and open the door for a bearish reversal.

Source: https://www.axiory.com/analytics/technical-analysis/eth-retests-support-bulls-eye-next-move