Technical Analysis

ETH/USD Analysis – May 10, 2021

By LonghornFX Technical Analysis
May 10, 20213 min

Ascending Triangle Breakout!

During the Asian session, the second leading crypto currency pair ETH/USD managed to extend its early-day winning streak and hit the new all-time high above $4,100 marks. It is worth mentioning that the last swing low was formed near $3,722 before Ethereum price started a new increase. It broke the $3,900 resistance to create the new rally. It even rose above the $3,950 mark and a connecting bearish trend line on the hourly chart.

The ETH/USD crypto pair extended its previous rally, and it created a new all-time high above $4,100. The ETH/USD pair price is trading well above $4,100 and the 100 hourly simple moving average. Traders seem to have moved their focus to the smart contract token, as Bitcoin remains quiet. Furthermore, the recent performance of ETH/USD price might have also affected the retail.

The bullish bias in the ETH prices could be tied to the fresh reports suggesting that the Ethereum ETH has entered the top 20 largest assets by market cap. It should be noted that the ETH has a market capitalization bigger than giants like Mastercard, Walmart, Johnson & Johnson, Bank of America, NVIDIA, PayPal, and many more.

Apart from this, some experts expect further gains in the second-largest cryptocurrency. Especially after the comments from a billionaire investor and owner of the Dallas Mavericks, Mark Cuban. Lately he announced 3- well-known reasons why Ethereum could continue to be heading north and outperform bitcoin.

ETH/USD Intraday Technical Levels

Support Resistance

3850.60 3950.24

3878.70 3978.34

3900.42 4000.06

Pivot Point: 3928.52

ETH/USD - Technical Outlook

On the hourly timeframe, the ETH/USD pair has violated an ascending triangle pattern that’s driving sharp upward movement in Ethereum. The ETH's significant resistance is near the $4,150 mark. It represents the 1.618 Fib extension level of the downward move from the $3,985 high to $3,722 low. More upticks in ETH price could push the pair towards the $4,200 and $4,250 levels in the near term. The next major stop for the buyers could be $4,500 marks. Conversely, If ETH fails to continue higher towards $4,150, it could start a bearish correction. The initial support on the lowerr side holds around $3,950 mark. Around the same level, we can see a significant upward trend line forming with support near $3,920 on the hourly chart of the ETH/USD pair. If there is a downward break below the trend line, the ETH/USD pair will be exposed towards the $3,800 support zone. All the best!


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