ETH price is maintaining its bullish momentum as it continues to flirt with its 52 week high. As outlined in previous analysis, ETH was signaling a strong bull move after creeping back above $400 a few days back. As we approach the 52 week high, where could ETH be heading in the near term?
Over the last 24hr, ETH price has rallied +4.6% as it continues to outperform Bitcoin, XRP, and other top 10 digital assets by market capitalization. The recent surge comes at no surprise as the technicals have looked extremely bullish for the last few days. In a previous report by Visionary Financial, Ethereum was flashing bullish signals ever since surpassing $400 levels after the steep sell-off from yearly highs. At the time of this report, Ethereum is currently trading at $445. If we take a look at ETH on the one year time frame, we will quickly see that $445.99 is the 52 week high. Ethereum technicals continue to be impressive, signaling an environment where ETH could put in higher highs.
— Visionary Financial (@VisionaryFinanc) August 31, 2020
Ethereum Technical Analysis
On August 20th, ETH cracked its yearly high right around $445. Following this surge, the price took a drastic drop, selling-off all the way down to $380 levels. As Visionary Financial previously outlined, it was bullish that ETH did not reject $372 during the previous sell-off. The quick recovery to $400 levels was a bullish indicator, and it was believed that ETH would retest the yearly highs.
If we fast forward to the last 24 hours, Ethereum followed the analysis to a tee. The previous sell-off was natural as it gave the digital asset the opportunity to “cool-down.” If we take a look at RSI right now, it is in a perfect position for another leg up. If Ethereum can power its way through the yearly high of $445.99, it appears that the digital asset will be eyeing $545 resistance levels. In order to manage risk, traders will be watching the 25 day moving average and the $450 resistance level. If ETH price fails to accept $450 like it did on August 20th, you could very well see another strong sell-off. In addition, it will also be important for ETH to hold above that 25 day moving average ( white line on the chart above ). Doing so should help it propel its way up. The fact that ETH is retesting the yearly high is a bullish sign that should not be ignored.
Image Source: Unsplash