Taking a look at the Ethereum market this morning we can see some similarities with the btcusd chart. Ethereum has followed suite and is also trying to break out of the longer term descending triangle that the market has also found itself in. Lets take a look at the charts.
Ethereum found strong support around $440 where the bulls clearly won the battle and pushes prices through the $460 price point, where Ethereum also leaves it longer term bearish trend behind. Should prices consolidate above $460 we can expect the $500 resistance to get tested, and most likely broken soon.
There is a massive divergence between price and momentum at this point in time and any seasoned trader will tell you that its worth paying attention. To get a even better idea of where Ethereum is standing right now, lets take a look at the market vs Bitcoin.
Ethereum is looking quite bullish against Bitcoin with prices popping above the 20 MA, and another strong bullish indicator is the momentum that has managed to stay above 0. There is also a bullish divergence on this chart and it is another confirmation for me that we could see higher prices incoming sooner than later.
Short term support is currently at around $450 – $460, and I am bullish on the ETH market should we stay above this zone. Versus Bitcoin I am looking towards 0.0712 as support and I would expect a nice bullish trend developing should we stay above it. Safe trades.