Ether has broken above a key technical resistance level, strengthening momentum after a period of consolidation that followed a sharp rally in late August.
The cryptocurrency moved above $2,661.52, its September 11 high, breaking out of a chart formation known as a “bull flag.” The pattern typically develops after a strong price increase and a period of sideways trading before another potential move.
Technical analysis indicates that the breakout could put ether on course toward $3,050, with the cryptocurrency potentially pausing around the $2,775-$2,825 range before making another move.
Ether has also climbed above its 10-day moving average and a trendline extending from its February high, indicators that technical analysts use to assess market momentum.
If the upward movement continues, the cryptocurrency could eventually test the $3,395-$3,445 area, which corresponds with previous highs recorded late last year and in January.
However, the outlook remains dependent on price levels holding. A fall below the $2,560-$2,565 area would weaken the current momentum, while a decline below $2,350-$2,360 could indicate that the latest rally has run its course.
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