Ethereum (ETH) had a fantastic, if unexpected rally over the last 7 weeks which took the number 2 cryptocurrency by market capitalization 100% higher. Is this now the end of this surge, as $ETH struggles to get above $2,700, or is there another big price rise to come?

$ETH price inside short-term bullish pattern

Source: TradingView

The short-term price action for $ETH reveals that it is inside an ascending triangle - a bullish chart pattern. The top of the triangle coincides with the $2,750 horizontal resistance level, and so should the bulls be able to break through both, a resulting price surge could take place.

$ETH tapping on 0.5 Fibonacci resistance level

Source: TradingView

Zooming right out into the weekly time frame it can be observed that the bulls have done wonders so far for the $ETH price. From the depths of despair, down at less than $1,400, the price is now tapping on that $2,750 resistance, having flipped the major $2,500 horizontal level into support.

The Fibonacci levels, taken from the swing high to the swing low, are giving targets of $3,000 (0.618), and $3,500 (0.786), should ETH be able to surge through the current resistance.

The sheer magnitude of the ETH/BTC downtrend

Source: TradingView

Looking at the ETH/BTC pair, things do not look anywhere near as rosy. Although the bulls have been able to put together a 40% rise for $ETH against $BTC, when one looks at the sheer magnitude of the downtrend, this isn’t much more than the proverbial “drop in the ocean”. 

For $ETH to just get up to the first of the Fibonacci levels at 0.236 (0.034 BTC), it would entail another 39% rise from here, taking ETH/BTC back to the underside of the ascending trendline.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.