Ever since November 14, 2017, when Ethereum broke out of the Symmetrical Triangle pattern that we detailed in our analysis of Ethereum the same day just prior to the breakout, it has been on a very strong upward price move making new highs on ten of fourteen trading days; four on which new all-time highs were made.Ethereum’s momentum wasn’t deterred one bit over the Thanksgiving Day weekend. Chart #1 below shows the strong upward price momentum that Ethereum carried into the holiday and continues to ride to new highs.
Chart #1: Daily Price Chart
From a technical analysis perspective, the breakout from the triangle pattern is a textbook completion of a Symmetrical Triangle Pattern.The pattern is indicative of interest in a market, accompanied with uncertainty in the market which causes buyers and sellers to cancel each other out, with neither making a decisive move, until a breakout takes place.The first price target after the breakout was the high of the prior price upswing establishing a resistance level at $339.45. Ethereum roll right through that resistance level within five days of the triangle breakout, and on to trade right through the all-time high of $396.00 five days after that on November 23rd.The entire time volume has been steadily increasing.
Chart #2: 15-minute Chart
For the traders that missed the triangle breakout, there are indications that there is still plenty of momentum left in the upward price move.Ethereum is now in uncharted territory, so there’s really no telling how far this move will go, at least from a technical analysis perspective.The one thing that is for sure is that a price retrace will inevitably need to take place, at which time opportunities for entry will present themselves.At present, there is sill interest to the upside, as indicated by an analysis of volume patterns in Chart #2.The 15-minute chart show all the trading activity after the Triangle breakout. The shaded areas show how volume is consistently increasing as price moves upward.As upward momentum diminishes, this pattern will begin to reverse, and even start to show more volume spikes that correspond with downward price movements. This price dip will be the setup.After a period of profit taking and consolidation, volume pattern like those in Chart #2 will begin to appear again. That is the time to enter long, or add to existing long positions.We will be watching closely.Image courtesy of BTC Keychain via Flickr
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