The price of Ethereum is shaking off Monday’s profit-taking.
A technical setup in ETH appears to be ready to drive it beyond $2,325.07.
Twofold support appears to be strong enough to maintain price action on the upward in the coming days.
Profit-taking pressured the Ethereum price Wednesday, as it did most cryptocurrencies, after a weekend rise. We’ve already paired losses this morning and are back to profit levels from Sunday evening.
After a difficult Monday in which major cryptocurrencies were forced to give up gains made over the weekend, cryptocurrency investors can breathe again. The profit-taking even escalated yesterday afternoon, and ETH threatened to sell-off. However, purchasers returned on technical levels.
Ethereum’s price has achieved a new intermediate high at $2,360 since breaking the orange falling trend line on June 28. ETH fell to a new low, only to retest $2,360 after testing another trend line. Ether has matched its profit-taking from last Sunday today. This is referred to as a cup-and-handle configuration by technical traders, and it appears to be poised for a move upward.
This strategy is based on the fact that ETH is expected to break through $2,360 this week, only to retest it later in the week before trading higher toward a more significant profit level. On the chart, such level is approximately $2,695, where the Ethereum price was previously rejected on the downward orange trend line.
Chart of ETH/USD on a daily basis
The new trend line should hold well, as Ethereum has already gone through two confirmed tests, each of which has driven the price back toward the $2,360 mark. If that trend line is broken, ETH still has the orange ascending trend line waiting for a retest, which would be the next point of entry for buyers./n
