Alongside Bitcoin reaching a new all-time high above $20k, Ethereum continued to gain a new high valuation for 2020. Ethereum crossed its previous local top at $637, registering a new high at $676. While at press time, it was down to $644, there is a sense of optimism regarding a possible move upwards.
Ethereum 4-hour chart
Source: ETH/USD on Trading View
While Ethereum managed to go above $637 with its recent rally, its strong bullish sentiment has been keeping it above the immediate support i.e $637. Over the past 24-hours, ETH hasn’t traded below $637, indicating a bit of stability at the current price range. The trading volumes have remained high as well indicating a sense of higher activity.
At press time, Ethereum was also exhibiting the formation of a bullish flag. While the bull flag may possibly trigger the 2nd bullish leg in the current market, it is important to keep a note of the next 24-hours. Consistent trading above $637 should allow the asset to move another leg up in the charts, and possibly attain a position above $700 next.
Market Rationale
Source: ETH/USD on Trading View
After reaching the local top at $676, the retorting price is leading to a decrease in the Relative Strength Index but it is a good sign since the price hasn’t dropped below the last high at $637. With the RSI falling below the overbought region, a resurgence will lead to another spike of the indicator in the over-bought region with buyers putting in more pressure.
Awesome Oscillator suggested a similar conundrum with the bears taking a minor grip on the market at press time.
Conclusion
While Ethereum is currently bullish according to the bullish flag, this positive narrative will be stronger if it remains above $637 for another 24-hours. It will increase the probability of a possible position above $700 before the end of the current week. With the current high volatility, further price swings can be expected.