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In this article, we will take a look at the ETH/USD market and highlight some potential areas of resistance on the way higher toward $300 and beyond if the Golden Cross results in a bullish press higher.
Let us continue to take a look at the ETH/USD market and highlight some potential areas of support and resistance moving forward.
Ethereum Price Analysis
ETH/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Analyzing the ETH/USD chart above, we can see that since reaching resistance around the $270 level, Ethereum has been trapped within a period of consolidation. Price action has been trading sideways between the $270-$228 price range.
We can also clearly see the Golden Cross occurring on May 20, 2019, and being confirmed on May 21, 2019 when the 50-day EMA (orange line) crossed up above the 200-day EMA (blue line).
What Is the Current Trend?
After a 43% price increase over the past 30 trading days, the current trend for the market is most certainly bullish over the medium term. For this bullish trend to be invalidated, we would need to see price action fall and break beneath the $200 level.
Where Is the Resistance Above the Market?
Moving forward, if the bullish pressure can cause ETH/USD to break above the $270 level, we can expect immediate higher resistance above to be located at the $280 level. Above $280, higher significant resistance can then be found at the long-term bearish .382 Fibonacci Retracement level (drawn in red), priced at $298. This bearish Fibonacci Retracement level is measured from the July 2018 high to the December 2018 low. If ETH/USD breaks above here, they will be free to make an attempt at our first target of $300.
If the bulls can continue above $300, further resistance can then be expected at the short-term 1.272 and 1.414 Fibonacci Extension levels (drawn in blue), priced at $315 and $334 respectively. This is then followed up with resistance at the bearish .618 FIbonacci Retracement level (drawn in red), priced at $349.
What If the Sellers Regroup?
Alternatively, if the sellers regroup and begin to push the market lower in the short term, we can expect immediate support beneath the market to be located at $247 and $240. Beneath this, further support can then be expected at the short-term .382 and .5 Fibonacci Retracement levels (drawn in green), priced at $228 and $213. This is then followed up with more strong support at the $200 level.
If the sellers continue further beneath $200, support below can be located at $193, $176, and $165.
What Are the Technical Indicators Showing?
The RSI has recently slipped from overbought conditions, which indicate that the bulls have taken a recent break. This is represented by the recent period of consolidation that we have seen. However, the RSI still remains above 50, which indicates that the bulls are still in control of the market. If it can remain above 50 moving forward, we can expect the bullish signal from the Golden Cross to unfold.
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