ETHUSD has been moving into a strengthening phase since late December. The price has been strengthening by more than 40% since the breakthrough of strong resistance, which is a very significant movement in recent months, which so many were waiting for, looking for the bottom in the cryptocurrency.
At the moment, the coin is in the boundaries of a fairly strong range of 880(support) 2020(resistance). Classic price behavior in the range boundaries is trading from the upper boundary to the lower boundary and vice versa, but since we have a local upward trend at the moment, any nearest support levels can play a historical role in a new rally. Strong support levels: 1490, 1356
What to watch out for - the wedge. The price has tested the expected boundary of the pattern. Consolidation is forming with the momentum for a pullback (technical pullback to gain energy before further movement). An important nuance in this movement, that the price does not fall too deeply, in this case the mood in the market will change a lot. Precondition for the rollback can be considered as crossing the signal line RSI and also the exit of the indicator from the oversold area.
The key trading range of 1662-1356 at the moment plays a key role, as the price has quite clearly limited the boundaries for its nearest location. After a fairly strong rally of 40% the price needs to gather strength for further movement in one direction or the other.
In the medium term, it makes sense to expect growth on the following prerequisites: -Sentiment indicators are beginning (for the first time in months) to point to crowd greed - China is starting to tax cryptocurrency but still don't pre-recognize it, I think that can be considered a good signal - CryptoQuant does not rule out that BTC is entering a new bullish phase. Also, at these levels almost no one sells at will, only if there is a forced sale - altcoins have an increase in large transactions - Bitcoin behaves stronger than the SP500 index