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Market Update: Ethereum testing continuation pattern

August 31, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, today we’re looking at Ethereum as buyers continue to test the top of the continuation pattern and have set new highs for August.

Looking at ETHUSD we can see a fair battle going on today. Sellers made early moves, taking price back down to the base of the current patter before buyers came steaming back into the market around the European open. Buying continued into London and not only did we see all of today’s losses cut but buyers edged into new highs for August. The price pattern that currently holds prices is an ascending triangle. In uptrends, these patterns are seen as continuous patterns. But the pattern isn’t valid until we see a confirmed breakout.

Currently, despite buyer momentum, we continue to see prices held at pattern resistance. Can buyers get the trend back on track with a break higher? Measured move suggests price could rally up to 12% if we saw a breakout. If that occurred, we could see a break of R1 resistance level. Depending on buyer momentum, the next goal for buyers would be R2 and then retesting record highs.

The above is great but it’s all pie in the sky until we see a breakout by buyers and the breakout is confirmed. We will continue to monitor Ethereum this week looking to see if buyers can take that next step.

Ethereum daily

All times are AEDT.