Ethereum Price Forecast: ETH/USD knocking on descending trendline resistance


  • Ethereum trades between the 100 SMA resistance and the 50 SMA support.
  • ETH/USD breakout above the descending trendline to pave the way for gains above $240.

Ethereum made a run for $240 after another dive to $220 on Monday. The trend reversal overcame the resistance at several levels including $225 and the 38.2% Fibo taken between the last swing high of $290 to a swing low of $218. In addition to that, the price stepped the 50 SMA in the 1-hour range. Unfortunately, the momentum lost steam under the descending trendline resistance.

At the time of writing, Ethereum is trading at $232.37 while dealing with the same trendline resistance. The prevailing trend is relatively bullish but I would say that buyers lack the volume and catalyst to sustain gains above $235. Looking at the technical picture, the RSI shows that Ethereum could embrace a period of consolidation mainly between $230 (support) and $235 (resistance). A bullish divergence above the MACD confirms the presence of the bulls, therefore, the consolidation will have an inclination to the upside.

Support has been established at $230 as highlighted by the 38.2% Fibo and the 50 SMA. Losses below this level could find support at $225, and the narrow buyer congestion zone at $218 - $220. Note that, Ethereum’s prominent trend remains sideways with an upward inclination.

ETH/USD 1-hour chart

ETH/USD price chart

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

ETH eyes $3,000 as network activity explodes and scarcity grows

Ethereum has finally hit a clear new all-time high across all exchanges, and it’s currently under a healthy consolidation period. Over the past week, Ethereum’s dominance over the market increased from 13% to 17%, while Bitcoin lost close to five percentage points. 

More Ethereum News

Ripple is South Korea’s most popular cryptocurrency, but price stays pressured

XRP/USD bounces off intraday low of 0.2647, stays below 21-day SMA for fifth day. As per the latest report from Messari, Bitcoin and Ripple are the most popular cryptocurrencies in South Korea. The research relies on the data from Bithumb, Corbit and Coinone for the fiscal year 2019.

More Ripple News

XLM Price Forecast: Stellar primed for a 10% short-term upswing amid massive network expansion

Stellar had tremendous success in 2021, reaching a high of $0.411 after a massive 230% price explosion. The digital asset has outperformed several other coins, including Bitcoin, and could be poised to rise even higher amid positive metrics shown by the Stellar Development Foundation (SDF).

More XLM News

BTC rally back to $40,000 in jeopardy as Grayscale’s demand diminishes

Bitcoin is trading slightly above $33,000 after plunging from January’s peak near $42,000. Investors, speculators, and analysts believe that the pioneer cryptocurrency can hit price levels beyond $40,000. 

More Bitcoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC is on track to $100,000 despite the recent correction

After hitting a new all-time high of $41,950, Bitcoin had a major 31% correction down to $28,850. For the most part, this pullback is considered healthy as past price action indicates it’s normal for the flagship cryptocurrency to experience 30-40% corrections during a bull rally.

Read the weekly forecast

BTC

ETH

XRP