- Ethereum draws nigh to the 2019 high at $361 as bulls flock the market.
- ETH/USD eyes resistance at $375 and $400 to confirm its bullish case for 2020.
Ethereum bullish case to $400 began the moment it cleared the hurdle at the high traded in February at $284. The move encouraged more buyers to join the market. Moreover, with Bitcoin price rocketing to the skies, Ethereum had no option but to rally due to its increasing correlation with the largest digital asset.
Indeed, it has been a journey of breaking barriers to the extent of closing in on 2019’s highs around $361. ETH/USD spike on the day, has traded a new 2020 high of $358.52. Meanwhile, the prevailing bullish trend suggests that it is only a matter of time before Ethereum breaks its one-year high as it sets for higher levels beyond $400.
Technically, the impact following the recent symmetrical triangle breakout is still contributing to the rally. The breakout has been supported by high trading volume. Besides, technical levels have remained bullish for over two weeks now.
For instance, the Elliot Wave Oscillator is at the helm of the bullish session. The RSI is holding well within the overbought region. For now, bulls are in control and if the technical picture remains intact, gains above $375 are within reach even this weekend session.
On the flip side, it is vital to realize that bullish markets are prone to retracements which also offer great opportunities for rebounds. In other words traders should carefully watch the market for confirmed reversals using the RSI and the MACD coupled with increased volume.
ETH/USD daily chart