Ethereum (ETH) price analysis: ETH/USD breaks above $300 enters the overbought territory
|- A move above $300.00 has improved the technical picture.
- The next significant resistance is created SMA100 weekly at $381.
Ethereum hit $315.31 high during early Asian hours and retreated to $308.68 by the time of writing. The second largest cryptocurrency with the current market capitalization of $33.5 billion on of the best performers of the day with over 9% of gains on a day-on-day basis and 6% higher since the beginning of Saturday.
An average daily trading volume for ETH is registered at $10.5 billion, which is twice as much as on Friday. ETH/USD has hit the area above $300 handle for the first time since August 2018.
Ethereum’s technical picture
Looking technically, a sustainable move above $300.00 has improved the technical picture significantly; however, the coin is deeply overbought on intraday timeframes, which heightens the probability of the downside correction with the initial support at $300.00 If it is cleared, the sell-off may be extended towards $290.00 with SMA50 (Simple Moving Average) 1-hour and the lower line of 1-hour Bollinger Band located on approach. The next barrier awaits us at $260.00 (SMA100 and SMA200 on 4-hour timeframe).
On the upside, we are in uncharted territory with the next strong barrier created by SMA100 weekly on approach to $381. A sustainable move above this handle will open up the way towards the next bullish aim of $400.00
ETH/USD, 4-hour chart
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