Ethereum’s price is rising today. It has touched $220 intraday which is great given that it dipped at $132 less than 48 hours ago. So that is almost a 100% increase in 2 days, pretty amazing price action.
Although the price rise has been amazing this week there is a reason why Ethereum must continue to rise from here. Why? The reason is visible on the chart below. The falling trend channel drawn with the purple lines is the point. Ethereum’s price has risen from the support line to the resistance line. In order for Ethereum to be bullish again it MUST break out from here. A breakout is an event where a falling trend (in this case at least) turns up again into a rising trend. That comes from traditional market analysis. Ethereum is very close to a breakout, and once above $220 for at least 3 consecutive days it would suggest that Ethereum will be attempting to climb back to the $400 area.
So every price above $220 in the coming days is very bulish.
For now, we are not even going to attempt to do a forecast. The reason being that it is extremely hard, if not impossible, to forecast the timing of such a breakout. Moreover, cryptocurrencies, and Ethereum being one of them, are so volatile when it comes to price that you better do not try to forecast this type of event.
In other words, we will continue to monitor the price of Ethereum very closely in the coming hours and days. We are focused on the $220 area, and, with that, how Ethereum behaves in relationship to the trend channel visible on below chart. That is the best thing to do, and (new) positions can only be taken once a real breakout occurs.