Ethereum Market Update: ETH/USD flat out at $240, the bullish scenario to $500

Ethereum is motionless at $240 after suffering rejection at $245 earlier this week. As expected, the weekend session is flying by without volatility. Consolidation continues to take precedence for the largest cryptocurrency. As reported, Bitcoin is also in consolidation with short term support at $9,200. Note that Ether’s price is greatly correlated to Bitcoin. Therefore, as long as the largest cryptocurrency holds this sideways action ETH/USD consolidation will remain.

Meanwhile, the price is trading above the moving averages and most significantly, the 50-day SMA. If Ethereum continues to hold above this level, the potential for growth will be huge in spite of the consolidation.

For now, sideways trading is supported by all indicators including the RSI and the MACD. As the market becomes tighter, the potential for a breakout due to the upcoming volatility spikes. Gains above $250 are still possible for ETH in the near term.

Additional price action to levels up to and above $300 will depend on news surrounding the much-anticipated Ethereum 2.0. The launch of the protocol is viewed as revolutionary for the network. As investors warm up to the eventual launch, Ethereum is likely to spike towards $500.

ETH/USD daily chart