Ethereum’s breakout above the triangle pattern met resistance at $250.
ETH/USD battles to contain losses above $245 and keep the focus on $250 and $260.
Ethereum followed in the footsteps of Bitcoin once again with gains targeting $250 and $260 respectively. Bitcoin corrected above $9,900 but the bulls lost momentum before hitting $10,000. A retreat is currently ongoing as Bitcoin buyers struggled to reclaim every inch of the ground towards $10,000.
Ethereum also advanced upwards from the consolidation range above $240. The price tested the $250 seller congestion zone for the first time this week. This brief rally was as a result of a technical breakout above a symmetrical triangle pattern. Unfortunately, the breakout was unsupported fundamentally due to low trading volume and buying interest. A good number of traders are not convinced that Ether is ready for roll towards $260 and $280 respectively.
For that reason, ETH/USD is trading marginally above the short term support at $245. The same area is home to the 50 Simple Moving Average (SMA) in the 1-hour chart. The Relative Strength Index (RSI) in the same 1-hour range has slowed down the downtrend due to the rejection at $250. The indicator is pointing north as a signal for increasing buying activities.
ETH/USD 1-hour chart
As long as the bulls can hold above $245, the potential for gains above $250 will remain intact. Traders should also watch out for an up-trending RSI likely to signal a stronger bullish momentum. Apart from the support at $245, an extended reversal would seek cushion at $240, $235 and $230.
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