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- ETHUSD rally approaches initial resistance levels- Constructive while above 270
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ETH/USD Daily Chart
Technical Outlook: Ethereum prices are up nearly 50% off the September lows with advance now testing near-term resistance today at 61.8% ext at 312. While we could see some more kickback from here, the focus remains higher while above 271/74– a region defined by the 100-day moving average and the 7/18 swing high. Note that daily momentum has remained below 60 and we’ll be looking for a move higher to confirm a more significant low is in place.
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Notes:A closer look at near-term price action shows Ethereum trading within the confines of a modified ascending median-line formation extending off the monthly lows. Prices reversed off confluence resistance today at 312 with interim support now eyed at 285. A break below 271 would be needed to shift the focus lower with such a scenario targeting 252 key support back at 234.
A breach higher targets the 61.8% retracement at 321– note that this threshold converges on the median-line heading into the close of the month. Bottom line, from a trading standpoint we’ll favor buying pullbacks while within this formation with a breach above the median-line needed to fuel the next leg higher in Ethereum prices. Subsequent resistance targets are eyed at 350/55backed by the record high-day close at 385.
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Relevant Data Releases
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– Written by Michael Boutros, Currency Strategist with DailyFX