- Ethereum sustains bullish action emanating from the generally impressive weekend session.
- A break out of the descending channel resistance could place Ether in a trajectory eyeing $160.
Ethereum is relatively in the green toward the end of the Asian session on Monday. The sustained bullish action emanates from the just-concluded weekend session which saw major cryptocurrencies including Bitcoin Ethereum and Ripple correct high above key support zones.
The second-largest cryptocurrency in the market has recovered significantly from the previous dip to $116. The asset not only defended the descending channel support but reclaimed several support zones, starting at $120, $125 and $130.
The price is trading above the Moving Averages whereby the 200 SMA is in line to offer support at $131.56 on the hourly chart and the 50 SMA at $128.96. Ethereum is exchanging hands a $134 and looking forward to breaking above $140 resistance. Moreover, a break above the channel resistance would allow more buying entries, pushing Ether past $160.
Unfortunately, the slightly oversold condition suggests that a reversal is imminent in the near term. On other hand, support areas at $130, $125 and $120 will come in handy to prevent a repeat of the declines experienced last week.
ETH/USD 1-hour chart
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