Ethereum price finds support above $250 after a failed attempt to break $250 for the second time this week.
ETH/USD likely to settle in consolidation as per the MACD; a move that will help keep the focus on $250.
Ethereum price rushed towards $250 on Wednesday during the European session. The move saw other cryptocurrencies such as Ripple embark on a barrier-breaking exercise at $250. Ether closed in on $250 but a break above the critical level did not materialize. Instead, an immediate reversal occurred sending the second-largest cryptocurrency back towards $240.
is trading at $242. Support above $240 has come in handy to stop losses into the $230’s range. Aiding to hold Ethereum above $240 is the 50 Simple Moving Average in the 1-hour range.
The technical picture turned bearish in a blink of an eye taking the attention from $250 back to $240. The Relative Strength Index (RSI) dived sharply from the overbought region (70). The indicator currently holds the ground marginally above 40. If a reversal occurs above the midline (50) then bulls could eventually renew their strength and pull Ethereum above the short term resistance $245 as hope for trading above $250 stays alive.
ETH/USD 1-hour chart
Looking at the Moving Average Convergence Divergence (MACD), ETH/USD has the potential to stay above $240. While gains back to $250 would be an uphill task, there is likely hood of consolidation taking effect. This way, Ethereum can avert declines under $230 altogether as it waits for the next run-up above $250.
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