Ethereum Price Forecast: ETH/USD spikes in tandem with Bitcoin, seller congestion at $250 delays progress
|- Ethereum retreats from weekly highs at $252; finds it increasingly difficult to break the resistance at $250.
- The short term technical picture is bullish in spite of the retreat as seen with the MACD’s bullish divergence.
Ethereum price extended the bullish action above $240 just as we discussed in the analysis on Monday. Initially, there was struggle at $242 but eventually ETH/USD joined in Bitcoin’s rally above $10,000 to post gains past $260. At the moment, Ether has retreated slightly to $246 (prevailing market value). On the upside, the first resistance holds ground at $250, although Ethereum has traded weekly highs at $252.
From a technical perspective, Ethereum is still in the hands of the bulls in spite of the retreat from the weekly high. The MACD features a slightly bullish divergence which places buyers in the driver seat. Besides, the indicator is also moving north within the positive region. On the other hand, the RSI is trying hard to hold at 70 (overbought region), although the pointing to the south brings to light that if bulls are not careful, the retreat could increase the momentum for a free-fall back to $240.
Recovery above $250 would pave the way for gains towards $300. Resistance is expected at $260, $280, and at the highs in February ($291). As far as support is concerned, a reversal could seek refuge at $240, $220, and $200. Losses lower than $200 would try to find balance at the 50% Fibonacci level taken between the last swing high of $290 to a low at $91.55.
ETH/USD daily chart
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