Technician’s Take: ETH Pulls Back Towards Breakout But Trend Remains Up

21st March 2022
Technician’s Take: ETH Pulls Back Towards Breakout But Trend Remains Up
  • Price settling outside breakout.
  • The next key upside level to target is US$3,286.

The immediate follow through after the sharp break out of the February downtrend line last Friday (18 March) was muted and over the weekend price has mildly pulled back towards the break level.

This is fairly typical behaviour as resistance and support often reverse roles after a breakout: a level that contained price before (resistance) very often then holds price after the level is penetrated (support). 

It is also worth noting that price is still within the range of the big base zone of September 2021, which launched a 70% rally. Momentum remains healthy and the underlying longer trend remains up, with general risk sentiment in other markets improving. The next key upside level to target is 3286.

Written by Bread News Team
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