Ethereum consolidates above $240; indicators such as the RSI and MACD confirm the sideways price action.
ETH/USD has sustained gains within an ascending channel since the breakdown to $90 in March.
The largest altcoin is following closely in the footsteps of the largest cryptocurrency by market capitalization, Bitcoin. Both of the major coins are in consolidation; Ethereum above $240 and Bitcoin above $9,600. Over the last two weeks, Ether bulls have focused on pushing gains above $250. However, last week’s momentum hit a wall at $255; a move that ended up in a slide into the $240’s range.
Interestingly, ETH/USD has contained the losses above $240. Bearish calls among some analysts have been given a blind eye. For now, consolidation is set to continue ahead of another breakout above $250. Ethereum has a prevailing market value of $243. The immediate upside is limited at $245 while the downside embraces support at $242.
Moreover, Ethereum is trading within the confines of an ascending channel. The channel support has been very instrumental in the recovery from March lows at $90; helping to keep the buyers on course. A break above the resistance of the channel would open the door for gains not only above $280 but also $300.
ETH/USD daily chart
An overview of the technical aspect of the market shows that Ethereum’s sideways trading could last longer. The RSI clearly shows that buying pressure and the selling pressure are in equal measure. Therefore, it is vital for traders to look out for inflection points for instance, a break above $245 and a slide below $240. The Elliot Wave Oscillator highlights the sustained bullish nature of the trend. In other words, Ethereum is inclined towards making a run upwards as opposed to downwards. The same is supported by trading above the moving averages.
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 firstname.lastname@example.org