Ethereum Builds Support Above $2,000 as Altcoins Gain Traction: Chart Study

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The crypto market just passed $2 trillion of market cap thanks to a broad rally in altcoins. Now the top altcoin, Ethereum, may be poised for a move to new highs.

The most important feature on ETHUSD’s chart is its breakout above the February high around $2,000, followed by a brief retest and tight consolidation pattern. Old resistance appears to be new support.

Second, looking back to recent price action we find a pair of higher lows. Price first held the $1,400 zone that was previous resistance. It next clawed back from a dip below $1,600. That’s a textbook ascending triangle .

Third, MACD has turned positive as ETHUSD powered back above its 50-day simple moving average and 21-day exponential moving average early last week.

For more, please click here to view the related idea and chart analysis on TradingView.

Ethereum (ETHUSD), daily chart, with key patterns, courtesy of TradingView.
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David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.