Ethereum has shown some significant signs of strength after seeing an intense rebound yesterday.
The cryptocurrency is now back within the boundaries of its multi-month trading range, and buyers appear to be trying to establish their recent lows as their long-term lows.
Overnight, sellers pushed it to $ 222 – just a hair above the crucial high timeframe support of $ 220.
The decline to this level catalyzed significant buying pressure, compounded by the rise in Bitcoin from $ 8,900 to $ 9,300.
ETH is now firmly trading within the $ 230-250 trading range that was first formed in early May. The outperformance of the aggregate market indicates the underlying strength of buyers.
One analyst notes that the cryptocurrency surge came as it hit its “monthly pivot” – suggesting that its recent lows could market a long-term low.
This happens when several bullish narratives emerge around the cryptocurrency that could help fuel a potential uptrend.
Ethereum recaptures multi-month trading range as the bulls roar
Last weekend, crypto markets faced some weakness when Bitcoin fell below $ 9,000.
This movement in the digital benchmark asset caused Ethereum and virtually all other top altcoins to decline as well.
However, in the meantime the market has rallied and is now above what it was before the recent decline.
At the time of writing, Ethereum is trading at its current price of $ 236, up roughly 4%. This marks a massive surge from the daily lows of just over $ 220 set yesterday.
Now that the cryptocurrency is trading back above the lower limit of its long-established trading range, buyers can try to test its upper limit, which is around $ 250.
That latest surge also came along with crypto, which was printing a bullish signal on its “monthly pivot,” according to one respected analyst.
“Well, it looks like ETH is looking to cement a bullish signal with the Gann fan right on the monthly pivot,” he said, pointing to the chart below.
Image courtesy of Mitoshi Kaku Chart via TradingView.
The upward trend in ETH could be fueled by several emerging narratives
In addition to signs of technical strength, there are several narratives circulating among investors that could further strengthen the upward trend.
Luke Martin – a respected analyst and host on the Coinist Podcast – spoke about some of these narratives in a recent tweet, referring to ETH 2.0, DeFi, and EIP 1559.
“After a sideways June, ETH is trying to rise. The narrative for bullish ETH action was there (eth 2.0, deFi, EIP 1559) and the charts support it, ”he said.
Image courtesy Luke Martin. Chart over TradingView.
As the Ethereum trends should show in the coming days how influential these narratives will be on its future price development.
Featured image from Shutterstock. TradingView charts.