Ether Breaks Out of Bull Flag Formation
Cryptocurrency ether has broken out of its bull flag formation, suggesting it's ready to make its next move higher. The formation had evolved over recent weeks after a sharp surge in late August.
According to technical analysis, the bull flag ended when prices rallied above the top of the formation on Monday, surpassing the September 11 high of $2,661.52. This should propel ether toward a target of $3,050, based on the size of the formation.
The chart also shows that ether has secured a foothold above a trendline drawn from its February high and rose above its 10-day moving average, increasing the chances of an extended rally beyond the initial target. However, if ether were to fall below $2,560 or $2,350, bulls would grow nervous.
The views expressed by Christopher Romano, a Reuters market analyst, are his own, and the column does not constitute investment advice or trading recommendations.