$2000 back in ETH/USD’s sight as technicals scream buy
- Ethereum bulls fight back control, eyes a break above $1700 and beyond.
- The No. 2 coin confirms falling wedge breakout on the daily chart.
- The ETH bulls need a strong foothold above the bearish 21-DMA.
ETH/USD has extended the recovery from a drop below $1500 into the third day on Sunday, starting out a new week on the front foot.
The world’s second-largest cryptocurrency tracks the optimism across the crypto markets, especially with Bitcoin back above the critical $50,000 level.
ETH/USD: Technical setup points to a potential rally towards $2000
Ethereum’s daily chart spotted a falling wedge breakout on Saturday, opening doors for a rally above the $1700 mark and beyond.
ETH/USD: Daily chart
However, for the potential surge to gain traction, the ETH bulls need to crack the bearish 21-daily moving average (DMA) at $1665 on a sustained basis.
Acceptance above the latter could trigger fresh demand, which is likely to drive the prices towards $1998, the pattern target. The next stop for the bulls is seen at the record highs of $2041.
The 14-day Relative Strength Index (RSI) has pierced through the 50 level, entering the bullish zone. This suggests that the upside is opening up for the no.2 coin.
An immediate downside could likely be capped by the bullish 50-DMA at $1564.
A failure to resist above the last could fuel a sharp drop towards patter support at $1241.
ETH/USD: Additional levels to watch