- Ethereum breaks out above $440 in a bid to smash through the current 2020 high at $447.
- ETH/USD bullish case to highs above $450 seems unstoppable as shown by the RSI and the MACD.
Ethereum has entertained the ongoing bullish case since the weekend session. In addition to reclaiming lost ground above $400, Ether paced past several other hurdles including $420 and $430. On Monday, there was a reversal back to the support at $420 before the bulls gathered enough strength to pull ETH above $430. The bullish action remained unstoppable with the bulls reclaiming the ground above $440 towards the end of the Asian session on Monday.
At the time of writing, ETH/USD is doddering at $442 amid a massive bullish momentum. All eyes are glued on breaking August’s high traded at $447 and pushing the second-largest cryptocurrency to new milestones beyond $450.
The technical picture is strongly positive at the moment. The RSI and the MACD highlight the obvious influence the bulls have over the price. For instance, the RSI is just about to cross into the overbought region while the MACD is resuming the uptrend within the positive region.
The widening gap between the 50 SMA and the 100 SMA in the 1-hour timeframe also drives home the point that buyers are in the cockpit. Pushing the throttle forward would force a lift-off above $450; a move that would greatly increase Ethereum’s chances of trading above $500 in September.
On the downside, establishing support at $440 should also be a priority because, in case of rejection at $447, the buyer congestion zone would save ETH/USD from a devastating dive to lower levels at $430 and $420 respectively. Other support areas to keep in mind are the accelerated trendline (broken line) and the main trendline (green).