Ethereum (ETH) Set for a Breakout? Will It Smash Final Resistance on Third Try?
The Ethereum price is beginning to motor on Thursday morning, up more than 3% on the day so far. Is this the build-up to an attempt on the last big resistance at $4,100? At the third time of asking, will the $ETH bulls have what it takes to smash through this resistance and take $ETH back to the all time high?
$ETH price heading back to $3,800
Source: TradingView
The 4-hour chart for $ETH shows an already tall green candle that looks set to hit the 0.786 Fibonacci, perhaps very shortly. This surge has lifted the price back into an ascending channel, which has as its potential top that all-important $4,100 resistance level.
At the bottom of the chart, the RSI reveals a breakthrough and retest of the descending trendline. This lends itself to a continuation of the upside price action.
Is a bull flag forming?
Source: TradingView
Zooming right out into the weekly view, it can be seen how the last two pivot highs stopped right at the $4,100 horizontal resistance. With further resistance showing back in 2021, this has become an almighty level, and will require a huge effort from the $ETH bulls to break it.
What is noticeable this time around is that the price action keeps going back to test lower support. What could be happening is that a bull flag is forming. If this is a valid formation, a break out of the top could easily provide the impetus to shoot through the huge overhead resistance.
The Stochastic RSI indicator lines have turned back down again. While they could still bump along from the 80.00 level, they will have to come back down at some point.
The Relative Strength Index (RSI) shows how the indicator line burst through the descending trendline. This probably accounts for the recent relatively explosive price action.
ETH/BTC horizontal resistance about to break in favour of $ETH
Source: TradingView
Finally, looking at the ETH/BTC chart, it can be noted that $ETH could be about to break through an important horizontal resistance level. Up above this is a long-time trendline that would also help to turn the tables in the favour of $ETH.
At the bottom of the chart, the RSI reveals a breakout of the descending trendline, a retest, and the indicator line heading higher. This would definitely support the thesis of an ETH/BTC breakout of this level.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
