- Ethereum revives bullish momentum following a falling wedge pattern breakout.
- The ability to hold above the 50-day SMA could determine the recovery towards $160.
Ethereum made a turnaround in December following a drop to levels below $120. The recovery that ensued towards the new year was welcomed but remained lethargic. However, 2020 has come with renewed strength among the bulls. For instance, ETH is trading above $140, although the digital assets opened the trading this year around $130.
The widespread bullish wave on Monday this week saw Ethereum pull above the critical $142 zone. The price is settling above the 50-day SMA in a bid to sustain gains towards $160. Also contributing the bullish momentum is the break from the falling wedge pattern as observed on the daily chart.
The Moving Average Convergence Divergence is almost crossing into the positive region. The bullish cross signals that gains suggest that Ethereum bullish action is imminent towards $160. Although from a broader perspective, the gap between the 200-day SMA and the 50-day SMA suggests that bearish pressure is still present and cannot be ignored.
ETH/USD daily chart
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