The bear div that we discussed in last week's analysis was nicely caught on the support at $1238 and then you see the rsi cross the bear trend line as well. We can say that this was it and we can start looking at a new ATH. For this to accelerate the rsi will have to cross the ema as well.
day chart: https://www.tradingview.com/x/Kt56ysjj/
Here Ethereum is in an ascending triangle where we see three equal tops with a constant higher low. The ema's are in bull position but have moved a little closer together over the past few days and we see volume declining. Basically, you could say that the trend is declining in strength but in a triangle or pennant that is exactly what you want to see. As you reach the apex of the formation you see the volume decrease and then surge back in at the breakout of the pattern.
On the rsi we see the strength already increasing so the 50 level has been broken through and also the ema has crossed bullish.
4h chart: https://www.tradingview.com/x/ajYEvK71/
Here the first signs of a possible breakout can already be seen. The local structure has been broken and there has been a beautiful retrace on the Fibonacci level (black line). The ema55 crossed the ema100 bullish last night and at that moment the rsi is testing the ema which has caused the current inpulse.
1h chart: https://www.tradingview.com/x/vqqmMzxC/
Conclusion:
I expect us to break through the ascending triangle in the coming hours/days. The next resistance I am looking at is around $1700. However, I am also taking into account the other side of the coin and if we break the sloping trendline on the downside then $1238 is the level where we should start to find support.
