Ethereum settles above $240 after retreating from highs at $246.77.
Despite the retreat, Ethereum remains technical poised for gains above $250.
Ethereum exploded in impressive gains on Monday. The move resulted in significant price action above various key levels including $235 and $240. The bullish leg extended towards $250 but failed to sustain gains above $245. A weekly high has since been formed at $246.77 (on Coinbase). For now, the price is teetering at $242.93 amid a building bearish momentum.
The 4-hour chart shows Ethereumtrading above the moving averages. If push comes to shove and a reversal occurs under $240, ETH/USD will seek support at the 50 SMA ($232.23) and the 100 SMA ($229.26). Meanwhile, the 50 SMA seems to be expanding the gap above the 100 SMA. This means that buyers still have an upper hand in the current European session.
The impact of the falling wedge pattern is unlikely to have faded away. Therefore, if Ethereum continues to hold above $240, buyers will have enough time to gather the strength they need to create enough volume in support of gains above $250.
ETH/USD 4-hour chart
From a different technical angle, consolidation could take over, mainly after all attempts to break push towards $250 fail. The RSI, in the case, shows that selling and buying power are canceling out. The indicator holds the ground at 70; upward actions will result in gains while downward actions will encourage more sellers to join the market, as a result pushing Ethereum below $240.
On the other hand, the MACD clearly shows that the trend is in the bulls’ hands despite the retreat. In addition, a bullish divergence puts emphasis on bulls emerging as the ultimate winners.
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