Bitcoin is giving signs that its bull rally resumed after breaking above $12,000 again. Other cryptocurrencies are not following the momentum, allowing BTC to regain 70 percent dominance. Despite other altcoins losing in satoshis, this technical analysis will explore whether Ethereum, XRP and Binance Coin have the potential to follow Bitcoin’s uptrend.
After reaching a yearly high of $366 on June 26, Ethereum retracted over 48 percent to hit $190 on July 16, which is where the 61.8 percent Fibonacci retracement level is. Although this is considered the ‘golden’ retracement area due to the high probability of a rebound, ETH has been consolidating between the 61.8 and 50 percent Fibonacci retracement level since then without much volatility.
Recently, the TD Sequential Indicator gave a buy signal in the form of a red nine candlestick on the 3-day chart. This bullish signal was validated after the current green two candlestick began trading above the previous green one candle, hinting that ETH could indeed rebound from current levels.
If Ethereum is bound to surge, it could find some resistance on its way up around the 38.2, 23.6 and 16.18 percent Fibonacci retracement levels that are sitting at $256, $297, and $318, respectively.
ETH/USD by TradingView
Based on the 1-day chart, it seems like the Ethereum’s upswing is inevitable. Under this time frame, an ascending triangle appears to be developing. Since it was formed at the bottom of the recent correction, this pattern could have the potential to reverse the trend from bearish to bullish. Thus, if the ascending triangle is validated, Ethereum could target a 16.5 percent upward impulse upon the breakout point, which is sitting around $227.