- Major cryptocurrencies look to end week on a strong note.
- $290 area aligns as a criticial resistance for Ethereum.
- Daily RSI approaches the overbought territory on Sunday.
Boosted by the positive mood surrounding the major cryptocurrencies, Ethereum easily erased the losses it suffered on Saturday and preserved its bullish momentum to climb above $270. As of writing, the ETH/USD pair was up 4.1% on the day at $273.
Ethereum failed to break above the $290 resistance (February 14, February 15, February 19 high) several times earlier in the month and fell toward $250 to form a horizontal trading channel. Although the pair continues to trade above the 20-day, 50-day, 100-day and 200-day SMAs, which are all pointing north, the Relative Strength Index (RSI) on the daily chart is close to reaching the overbought territory.
However, considering the fact that Ethereum continued to climb higher during the first two weeks of the month despite the RSI staying above the 70 mark, suggests that the bullish momentum could remain intact even if the RSI shows overbought conditions.
Above $290, Ethereum could target $300 (psychological level). On the downside, Fibonacci 23.6% retracement of the January-mid-February rally at $250 aligns as the first support level. The 50-day SMA is also floating near that level to strengthen this area. $225 (Fibonacci 38.2% retracement of the same rally) could be seen as the next support.
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