Ethereum sustains gains within an ascending channel after a recent breakdown to $175 support.
The ongoing bullish pressure has encountered resistance at the 61.8% Fibo which must be broken for gains towards $220.
Ethereum has embarked on the grand journey of breaking key barriers. Following the freefall to the support at $175 two weeks ago, Ether has sustained gains above $200. This bullish action is reminiscent of Bitcoin recovery towards $10,000. The weekend session saw the price step above $210 after finding support at $205. At the time of writing, the crypto has jumped above $215 to trade at $216.
The bulls are also dealing with the resistance at the 61.8% Fibonacci level taken between the last swing high of $290.21 to a swing low of $90.05. If the resistance in this zone is overcome, ETH/USD is likely to gain momentum and take the fight to $220.
ETH/USD daily chart
Meanwhile, the technical picture shows that the bulls are in the driver’s seat. The Relative Strength Index (RSI) is moving north after stepping above the average (50). The 50-day Simple Moving Average (SMA) has crossed above the longer-term 200-day SMA. The widening gap between the two moving averages displays a stronger bullish picture.
It is essential that the bulls keep the price above $215. This will allow them to focus on breaking $220 and $230 resistance zones respectively. If a reversal is to occur from the current levels, expect support at $205, the 50% Fibo at $191, and the 200-day SMA at $175.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com