Since the Ethereum Foundation has accelerated the development of ETH 2.0, the buying pressure behind this cryptocurrency has skyrocketed to new yearly highs. Now, several technical indicators have pointed out further bullish action.
Ethereum Aims for Higher Highs
Ethereum made headlines after its price surged to a new yearly high of $343.9.
When looking at the price action of the top five cryptocurrencies by market cap, it seems that the smart contracts giant is leading the ongoing run-up. And, data reveals that it may have more room to grow.
Based on its hourly chart, Ether appears to have broken out of a bullish pennant on July 30, invalidating all the sell signals that suggested it was bound for a correction.
This technical formation was created as a direct result of ETH’s price movement between July 26 and July 30. Two trendlines that converge can be drawn along with the swing highs and lows. By measuring the distance between the pennant’s highest points and adding it to the breakout point, this pattern estimates a potential upside target of 8.5%.
After breaking out of this bullish formation, the second-largest cryptocurrency by market cap has gone up by 6.4%. If the buying pressure behind it continues to increase, it may advance further towards $350.