Ethereum’s [ETH] latest breakout and what it means for you

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Over the past week, Ethereum [ETH] has flipped the $1,603-level from resistance to support after a morning star candlestick setup. Post jumping above its three-month trendline support (white, dashed), the bulls found renewed buying pressure and reclaimed their spot above the 20/50 EMA.

The supply zone (green, rectangle) could propel a near-term slowdown as the price action approaches the apex region of its reversal pattern.

A potential rebound from the upper band of the Bollinger Bands (BB) could position the alt for a near-term slowdown. At press time, the alt was trading at $1,713.5, up by 1.83% in the last 24 hours.

Source: TradingView, ETH/USD

ETH’s long-term trendline resistance (now support) finally cracked after a market-wide buying resurgence. Meanwhile, the basis line of the BB looked north and underlined a buying edge.

The altcoin saw an over 73% ROI from its 13 July low and slammed its immediate supply zone around the $1,750-region, at the time of writing. Nevertheless, the recent bullish engulfing candlestick could propel near-term buying tendencies. The bullish crossover on the 20/50 EMA has further reaffirmed the buying edge on the daily timeframe. Any close above the $1,790-mark would hint at a bearish invalidation. In this case, the potential target would lie around the $1,900-region.

Should the buyers succumb to the rising-wedge structure, ETH could see a close below the basis line of BB. In such a case, the $1,442-level could cushion immediate retracements.

Source: TradingView, ETH/USD

The Relative Strength Index held its position above the midline to reflect a buying advantage.