Ethereum Tries for a Breakout

Ethereum, like Bitcoin, has been trapped in a super-tight range since the beginning of June. (See Average True Range.)

ETHUSD has faced resistance at a trendline spanning the peaks of February and June. ETHUSD tried to break it several times without success, but today may be different for two reasons.

First, MACD just turned positive.

Second, the 50-day simple moving average (SMA) is squeezing up from below.

The bears tried to attack ETHUSD on June 27, but were stopped dead in their tracks by the 50-day SMA. That SMA provided support for more than a week before the bulls stepped in on Monday. Now prices are squeezing between the trendline and 50-day SMA, creating the potential for a breakout.

Bitcoin Dominance is another potentially bullish condition for the No. 2 crypto. BTC.D fell to its lowest level since late February earlier today before rebounding. The spread of decentralized finance (DeFi) and rallies in smaller altcoins is becoming more widely known, which may widen buying interest in ETHUSD.