Ethereum price flirts with $225 amid broad-based cryptocurrency consolidation.
ETH/USD bulls look forward to a possible rally to $250 on breaking above the EMA 50 resistance.
Ethereum, just like its counterpart Bitcoin, has settled for consolidation. In fact, the entire cryptocurrency market is dealing with sideways trading action. As for Ether, the resistance at $230 was an uphill task. At the same time, their failure to rise above the same zone fueled the bears to explore the levels towards $220. At the time of writing, ETH/USD is trading at $225 amid the much-welcomed consolidation (at least for the bulls).
Marginally above the current market value, buyers are forced to deal with a sharply descending trendline resistance. For over a week, this trendline hurdle has stood in the way of gains. Therefore, it is the bulls’ mission to overcome it and allow the focus to shift back to $230 (medium-term resistance).
ETH/USD 4-hour chart
The consolidation is currently emphasized by the technical picture. For instance, the RSI is leveling at 45. Looking back, the indicator stalled slightly above 50 despite a gradual but steady recovery from June lows around 25. If the motionless action continues, expect Ethereum to hold in consolidation longer.
Consequently, the MACD shows that although consolidation is the strongest trend at the moment, Ethereum does have a bullish inclination. The indicator features a bullish divergence in addition to closing in on the midline. If the MACD crosses into the positive region, we can expect buyers to gain confidence in the recovery and pull the price above $230. Moreover, gains above EMA 50 would give the bulls a boost towards the key range resistance between $245 and $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 firstname.lastname@example.org