- Ethereum appears to be entering price discovery mode, with bulls taking full control of its price action as they sent the crypto flying
- It set fresh all-time highs overnight and is currently consolidating below the $1,600 resistance level that many analysts have been watching
- A break above here could confirm that it is currently in price discovery mode and allow for significantly further upside in the days and weeks ahead
- One trader is now highlighting the technical significance of the recent breakout rally, which allowed the cryptocurrency to break free from a multi-year trading range
- He expects this to lead to significantly further upside in the mid-term
Ethereum has been caught within a strong uptrend throughout the past day, which came about due to its break above the key resistance in the mid-$1,400 level that had been hampering its growth previously.
Bulls are now aiming to take full control of the crypto’s price action, potentially sending it past the next key resistance it faces at $1,600.
Bitcoin’s slight uptrend has helped provide ETH’s ongoing rally with some fuel, as investors are moving further down the risk branch as they look to maximize returns.
One analyst is emphasizing the significance of yesterday’s Ethereum breakout, noting that it marked the end of a multi-year trading range.
Ethereum Shows Signs of Strength Following Yesterday’s Breakout Rally
At the time of writing, Ethereum is trading up just over 3% at its current price of $1,553. This marks a significant surge from recent lows in the sub-$1,300 region set just a few days back.
The crypto is showing no signs of slowing down anytime soon, and it is currently consolidating right below its next key resistance in the lower-$1,600 region.
ETH Breaks Multi-Year Trading Range as Analysts Eye Upside
One trader explained that it is likely futile to try to fade this breakout, as Ethereum is now pushing out of a trading range that was held for nearly three years.
He seems to believe that further upside is imminent in the days and weeks ahead.
“ETH: Price has been contained within a range for over 850+ days – 2.5 years. Its now pushing out of that very range. The bigger the range the bigger the expansion. What are you even fading?”
Image Courtesy of TraderXO. Source: ETHUSD on TradingView.
The coming few days should shed some light on where Ethereum and the entire market will trend in the days, weeks, and months ahead.
Featured image from Unsplash. Charts from TradingView.