ETH/USD traded higher yesterday, after it hit support slightly above the 2800 barrier, near the crossroads of the downside line taken from the peak of Dec. 1 and the upside one drawn from the low of Jan. 24. As long as the crypto is trading above those lines, we would consider the short-term outlook positive.
A clear break above the 3135 barrier could initially aim for the peak of Feb. 10, at 3265, where a break would confirm a forthcoming higher high and allow a test at the 3405 barrier, marked by the high of Jan. 12. Another break, above 3405, could carry larger bullish implications, perhaps setting the stage for advances towards the 3665 barrier, marked by the inside swing low of Jan. 3. If the bulls are still willing to stay in the driver’s seat, we could see them climbing towards the peak of Jan. 4, at 3880.
Shifting attention to our short-term oscillators, we see that the RSI lies above 50, pointing up. At the same time, the MACD, although slightly negative, runs above its trigger line and appears ready to obtain a positive sign very soon. Both indicators detect upside speed and support the notion for further advances in Ethereum.
To abandon the bullish case and start examining whether the bears are back in control, we would like to see an apparent dip below 2577. This will take the crypto below the aforementioned diagonal lines and may initially target the 2352 zone, which provided support on Jan. 27 and 28. Another break, below 2352, could extend the fall towards the low of Jan. 24, at 2150.