Ethereum breaks out, stepping above but the journey to $240 and $250 is an uphill task.
ETH/USD bounce from $227 (opening value) rides on a key falling wedge pattern breakout.
Ethereum is at the helm of cryptocurrency recovery on Monday following an advance made from $227 (opening value) to highs above $240. Ether is not the only cryptocurrency as in the green; Bitcoin, Ripple and Bitcoin Cash are trading 1.32%, 1.04%, and $2.54% higher in that same order.
As for Ethereum, the price is in the hands of the bulls. However, buyers are still falling short of a catalyst to sustain gains towards the psychological $240. At the time of writing, ETH/USD is trading at $235. The gains are following an incredible breakout above a falling wedge pattern. In addition, buyers are encouraged to increase their entries due to the price trading above the moving averages.
ETH/USD 4-hour chart
In the event of a reversal, Ethereum is likely to find immediate support at the 50 SMA ($231.02) and the 200 SMA ($228.28) in the 4-hour range. The existing trend is mainly bullish owing to the upward-pointing Relative Strength Index (RSI).
Moreover, the Moving Average Convergence Divergence (MACD) is moving closer to the mean line (0.00) after recovery from the dip to -3.74 on June 15. If the MACD crosses into the positive side of the midline, there is a chance that bulls will refresh the price action towards $240 and $250. Note that, the falling wedge pattern impact could still extend upwards as long it is supported by an increase in volume.
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