Ethereum rose on Tuesday, partially because of its positive correlation with Bitcoin, the top cryptocurrency that also notched gains, and partially because the Chicago Mercantile Exchange will offer Ethereum Futures effectively from February 8, 2021.
Trades flocked into the second-largest cryptocurrency during the early European session, pushing its prices against the US dollar up by 6.07 percent to a week-to-date high of $1,458. That is just $19 shy of its recently-established record level.
Technical chartists highlighted Ethereum’s latest upside move to validate a bullish pattern known as the Ascending Channel. Crypto YouTuber Lark David presented a diagram that showed ETH/USD maintaining a short-term price ceiling with a horizontal trendline.
Meanwhile, the analyst also noted a sequence of lower highs forming beneath the horizontal resistance, presenting it as a super-bullish outlook for Ethereum.
Ethereum tests the upper trendline of the so-called Ascending Channel pattern for a breakout move, according to Lark Davis. Source: ETHUSD on TradingView.com
Per the technical description, the breakout target of Ethereum’s Ascending Triangle chart stands over $2,000.
Ethereum’s latest upside move alarmed about a growing bearish divergence outlook on a daily timeframe chart.
So it appears, the ETH/USD exchange rate rose in defiance of its falling volume and depreciating momentum. Technically, it risked slowing down the prevailing uptrend at one point in time, which may follow up with a deeper retracement downwards.
Ethereum bearish divergence risks sending its prices lower. Source: ETHUSD on TradingView.com
Meanwhile, a twisted version of the Descending Triangle pattern showed Ethereum trading inside a…