The charts are looking good for Ethereum as the cryptocurrency shows signs of more consolidation. The coin is trading above $2,900 on Saturday with consolidation and support corresponding to the 50-day MA and lower trendline necessary to sustain the tempo.
Ethereum would need a break above the previous high of $3,200 resistance. This move is essential to open the price to test the main resistance of $3,400. If the market fails to build on the tempo and return to the bullish trend that we had in January, Expect more dumps that would bring the price down to the liquidity level of $2,800.
When viewed on a longer period such as 3 months, it is easier to see that the ETH/USD chart is bulling and the rejection of the support around $2750 and the formation of an inverse head and shoulder pattern.
For the bulls to take control, the $3,200 resistance must breached. With the RSI at 31, ether is close to being oversold and we shall see a sustained uptrend in the coming days. That would be the situation if the market moves to the oversold region.
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