Ethereum is poised for a technical breakout above $240 with the potential for gains towards $250.
ETH/USD is accorded multiple support areas including the 21 and 50 EMA if declines come into the picture.
Ethereum is changing the technical picture from the weakness experienced last week to a show of strength in the new week. The weekend session saw ETH/USD not only hold above the support at $232 but also pull the price closer to the short term resistance at $240.
At the time of writing, Ether is trading at $238 after hitting a wall at the descending trendline. In spite of the retreat, Ethereum is displaying a strongly bullish picture with the ability to take down the resistance at $240 and pave the way for gains eyeing $250.
Technically, the Ethereum price is ripe for lift-off as observed by both the RSI and the MACD. The former is holding above 70 highs at 80 (recorded over the weekend). A closer study of the RSI shows the indicator starting to point north as a signal for the bullish grip becoming stronger.
ETH/USD 1-hour chart
Looking at the MACD, we can easily tell that buyers are in the driver’s seat and the only thing holding them back from $250 is the delay in pushing the throttle level upwards. Moreover, the bullish divergence highlights the presence and influence of the bulls in the market.
It is apparent that a break above the coveted $240 will certainly call more bulls into the market as they anticipate gains towards $250. On the flip side, support is envisioned in several areas in the case of a reversal. Initially, ETH/USD will seek refuge at $230, the 21 EMA at $236.18, the 50 EMA at $235.38, the aforementioned $232 and last week’s support at $228.
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