Ether’s price broke out of a series of lower highs and higher lows, popularly known as pennant pattern on the 1H chart, creating room for an extension of the recent rally from the February 11 lows near $220.
The digital cryptocurrency is rising – currently trading at a fresh multi-month high of $284 on Coinbase.
While the pennant breakout has opened up upside toward $300, traders still need to adopt a cautious approach as the daily RSI is signaling extreme overbought readings. In such situations, markets often see sudden pullbacks.
So, from trading perspective, boosting long exposure at the current juncture is not advisable, although existing exposure can be held with trailing stop losses.
If the pair drops below $253, more selling pressure may emerge, taking prices down to $220.