ETH Bouncing Back
Price action in Ethereum is looking particularly interesting now following the developments we’ve seen over recent weeks. The decline towards the 2422 level support was accompanied by clear, bullish divergence in momentum studies and found strong demand at a test of the level. With price now turning higher from that region we are potentially seeing a double bottom in play. With this in mind, look for a breakout above the 3310.5 level to signal a broader move higher targeting 3707.5 initially and 4149 thereafter. Momentum studies are turning higher now, supporting the move with bulls looking for a break of the triangle top next ahead of that 3310.5 level.
Keep An Eye On
The move in ETH is broadly tracking the rebound we are seeing in risk assets this week. If risk sentiment continues to rebound then we can expect this current ETH rally to continue. With that in mind, keep an eye on news flow around Russia/Ukraine. The longer Ukraine holds out, the better while any escalation of violence from Russia will likely weigh on risk sentiment near term.
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