Ethereum climbed past $2000 a few hours at the start of the day. The $1950 mark was a technical target for Etheruem following its breakout past $$1420, and although it took some time, Ether finally made it. But it is likely that this is not the end of the trend.
Ethereum 1-hour chart
Source: ETH/USD on TradingView
The short-term pattern seen was one of a rising channel and generally a bearish reversal follows once the coins breaks out of the pattern. Such a dump would take ETH to $1800, but no sign of a drop was yet seen for Ether.
The lower and upper boundaries of the channel can be expected to serve as dynamic areas of support and resistance, while the highlighted region from $1950-$2050 represents the take-profit area projected based on the breakout past $1420.
In the short-term, bullish momentum was behind ETH. A retest of $2000 could occur, as it is a crucial psychological level, and would make for a good buying opportunity.
Market Rationale
The RSI has not dipped beneath the neutral 50 in the 1-hour timeframe for a few days now, marking a prominent uptrend in the shorter timeframes snd no divergences nor sell signals were yet spotted.
An entry in this region might not be the most opportune with regards to risk-to-reward. Ethereum’s slow rise over the past few days indicates that scaling into a long position in and around the $2000 mark would be a good strategy. Important levels to watch are $1950 and $1915 to hold as support- a move beneath these levels would indicate a breakdown of the rising channel and a short-term pullback, while the Fibonacci 27% extension level gives a target of $2286 as a take-profit target.
Conclusion
The market was bullish in the shorter timeframes, although ETH hasn’t yet displayed the explosive kind of breakout that some people expected from the king of the altcoins. The long-term outlook remains unchanged and no reversal signals were seen yet for ETH, with the rising channel yet unbroken.
Read More:Ethereum Price Analysis: 20 February
