The Ethereum price has started the weekend well, gaining +3.5% to $2,775. Will the current momentum finally take ETH back above $3,000?
Overall, it has been a productive week of trading for ETH, and the recovery from the May lows is still intact. However, the market is still frustrated by the key $2,900 level, which continues to cap gains.
Weekly Performance: +$390 (+16.45%)
Weekly Range: $2,275-$2,890
Trading volumes have dropped off this week which makes sense given last month’s decline. However, volume data from Coinbase shows that in the last 24 hours, Ethereum trading has accounted for 20.55% of total volume versus Bitcoin’s +18.03% contribution.
Ethereum Price Outlook
We can see on the daily chart that the Ethereum price continues to wedge itself into a narrowing triangle formation.
A trend line from May is currently providing resistance at $2,880. The market has made several failed attempts to cross this barrier over the last two weeks and is therefore, a key level to watch.
Equally important is an ascending trend line from the 23rd of May low at $1,728. This trend can now be seen just below the price, at $2,620. This has proved to be strong support, reversing declines in 3 of the last 7 days.
ETH will soon break out of this range. A decisive move above the resistance at $2,880 would suggest ETH can resume this year’s rally. An obvious initial target would be $3,000. Above that, $3,375, the closing price from the 18th of May comes next. This would represent a full recovery of the sell-off that started on May 19th.
However, if the price falls below support at $2,620, the 30th of May low at $2,182 becomes a possibility.
For now, the best plan of action is to wait for a break of either of these key levels.
ETH Daily Chart
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