- Ethereum breakout past the key trendline resistance greatly impacted the short-lived rally towards $250.
- ETH/USD is holding the ground above $240; sideways trading is likely, especially if gains towards $250 are delayed.
Ethereum moved higher in tandem with the leading cryptocurrency, Bitcoin. BTC extended the bullish leg towards $10,000 after establishing support above $9,400 on Monday. While $10,000 was not achieved, the recovery was significant enough to test $9,800.
As for Ethereum, the fresh demand sent the price above two key levels (last week’s resistance zones) at $235 and $240 respectively. Intriguingly, the price did not stop there as Ethereum stepped above $245 and even closed in on $250 before hitting a snag at $247.
The lack of enough volume cut short the technical breakout. Note that the breakout above the descending trendline is likely to have contributed a lot to the gains accrued. Moreover, Ethereum climbed above both the 50 SMA and the 100 SMA in the 4-hour range. These moves encouraged the bulls to push for more gains with an aim to breaking the hurdle at $250.
Ethereum technical analysis
From a technical perspective, Ether is still in the able hands of the bulls. Looking at the RSI and the MACD, the bullish grip is very intact in spite of the retreat mentioned above. The RSI is moving sidelong at 70. The horizontal action means that a consolidation above $240 support could take precedence. In addition to that, a bullish divergence from the MACD puts emphasis on the growing bullish grip.
Generally, Ethereum is primed for more upward action, targeting $250. However, if gains are delayed, consolidation would carry the day. Apart from the support at $240, extended reversal would seek support at the 100 SMA ($236.09), 50 SMA ($232.23) and $230.
ETH/USD 4-hour 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.