Two Possible Scenarios for ETHUSD Following BTCUSD's Rise

Hydra X

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Chart from Sigma by Hydra X

ETHUSD broke and closed convincingly clear of the $175-180 resistance zone on 11 May. Price action is currently capped by the upper bounds of an ascending channel, and more importantly, a cluster of sellers at the psychological $200 level. $200 is a key level for the pair. Should ETHUSD succeed in breaking and holding above, this would form a bullish case.


Chart from Sigma by Hydra X

We are currently monitoring two alternative scenarios:

(1) a bullish breakout of a long-term ascending triangle, which a close above $200 would validate.


Chart from Sigma by Hydra X

Of note also is that after tracking BTC prices closely for most of the past six months, ETHUSD is lagging behind the recent BTC push. It could be overdue for a catchup rally.

(2) Alternatively, we see also the formation of an extended rising wedge; should ETHUSD fail at $200 levels, a further breakdown below the bottom trend line of the rising wedge would be ominous for the pair.


Chart from Sigma by Hydra X