We wrote yesterday that ETH/USD is trading in a narrowing triangle and that it may break out. Well, that did not take too long.
Etherium/USD made a move to $410, breaking above the downtrend resistance line and creating a double-top at that $410 level. Is the break confirmed? After the spike, the cryptocurrency slipped back and is trading at just under $395 at the time of writing.
What do you think? Will the coin continue climbing? Or has it been rejected at the double-top for now?
The top level to watch is $446 which was the record high back in June. Support awaits at the uptrend support line at $285. So, a sudden profit-taking move could send the price to much lower levels.
The fundamental reason for going long ETH stems from the growing interest in electronic coins yet this interest is negative when it comes from regulators. Bitcoin, the most prominent crypto coin, is currently consolidating the gains and is trading in an uptrend channel.
Here is the daily chart: