FX.co ★ Ethereum ignores major downtrend line

ETH/USD rallied and now is trading at 1,426. The altcoin ignored the near-term upside obstacles and now it seems poised to extend its growth. It has climbed as much as 1,432 today where it has found temporary resistance.

Bitcoin's strong rally after the US CPI m/m and CPI y/y reported lower inflation helped the altcoins to reach new highs as well. Ethereum increased by 8.35% from yesterday's low of 1,321 to the 1,432 daily high.

ETH/USD 1,350 As Support!

Technically, ETH/USD ignored the 1,350 static resistance, the R2 (1,360), and most important the downtrend line. It has retested the broken downtrend line signaling strong buyers and an upside continuation.

It challenges the weekly R3 (1,426). This represents an upside obstacle. After its strong rally, we cannot exclude a temporary retreat or a consolidation before extending its leg higher.

ETH/USD Outlook!

The broken downtrend line and 1,350 represent immediate downside obstacles. The breakout was seen as a buying opportunity. A new higher high, taking out the R3 of 1,426 could activate further growth.