Ethereum Price Analysis: ETH/USD may return to $220.00 before another strong rally

ETH/USD has been range-bound with bearish bias within a long-term upside trend.
The critical support is created by the middle line of the daily Bollinger Band at $220.00.

Tanya Abrosimova Independent Analyst

Ethereum tested $247.93 during early Asian hours and retreated to $247.70 by the time of writing. The second-largest digital asset has gained about 1% of its value since the start of the day and stayed unchanged since the beginning of the day. Despite the downside correction, ETH/USD has gained over 11% on a weekly basis to become one of the best-performing assets out of top-10. Ethereum's market capitalization reached $27.3 billion, while its average daily trading volume is $27.2 billion.

ETH/USD: Technical picture

On a daily chart, ETH/USD returned inside the Bollinger Band (currently at $254.58); though it is still moving within an upward-looking trend from March 13 low. The RSI on a daily chart is flat and close to an overbought territory, which means the coin may be vulnerable to range-bound trading with a bearish bias. The sell-off may be extended towards $220.00 (the middle line of the daily Bollinger Band) and $205.00 (daily SMA50).

ETH/USD daily chart

On the intraday charts, ETH/USD has settled above the local support area created by a combination of 1-hour SMA100 and SMA50 at $242.00. Once it is out of the way, the sell-off is likely to gain traction towards 1-hour SMA200 at 234.00 and the above-said $220.00 barrier. The RSI has reversed to the downside, which supports the short-term correction scenario.