Will a bull flag formation send ETH to $1,933?

But with its promising technical formation and favourable indicators, can the bulls deliver an exciting push past $1,853? 

Here’s what the charts tell us.

TLDR

• Ethereum faces strong resistance at the $1,823 to $1,853 level.
• Technical analysis suggests a potential breakout due to a bull flag formation.
• RSI has reset, which could support ETH's upward movement.
• Positive funding rates indicate a less biased Long sentiment.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

The $1,823 to $1,853 area remains the key resistance for ETH, which, as of yet, price hasn’t been able to break out above. ETH has formed a bull flag despite it being somewhat of an ugly flag due to large wicks coming out of it. However, this technical formation would likely see ETH break to the upside. 

“So far, the $1,745 horizontal level (prior resistance) has acted as good support, which is definitely positive and should help fuel a move higher. The key is convincingly breaking above $1,853.” 

This was our update yesterday and remains true today. The fact this level has held suggests ETH is still strong, as it has been able to retest prior resistance and flip it into new support. 

ETH 1D

RSI and funding rates

The RSI on the 12-hour has reset substantially, which should help ETH to move higher now that it isn’t so overbought on this timeframe. As of yet, no bearish divergences have formed, which should also aid price to go higher. 

In terms of the funding rates, it was very high, and despite still being nicely positive, it has come down from its very high levels, indicating there is less of a bias to be long than there was a day or so ago.

Cryptonary’s take

We still have the conviction that ETH can move higher from here. If BTC can hold up and even push higher, which we feel it will, ETH can be fuelled by this to get over the $1,853 horizontal resistance and head up to the next level of $1,933. 

Action

• ETH’s performance has been weak, but following a weekend of positive price action, we feel ETH can go more meaningfully higher in the short and medium term. 
• If you don't have enough ETH, we feel now would be a good time to get in or at least begin to have a position.
• Both the above points remain true; we feel ETH is a good buy here for the short and the long term.