- Ethereum breakout past the key trendline resistance greatly impacted the short-lived rally towards $250.
- ETH/USD is holding the ground above $240; sideways trading is likely, especially if gains towards $250 are delayed.
Ethereum moved higher in tandem with the leading cryptocurrency, Bitcoin. BTC extended the bullish leg towards $10,000 after establishing support above $9,400 on Monday. While $10,000 was not achieved, the recovery was significant enough to test $9,800.
As for Ethereum, the fresh demand sent the price above two key levels (last week’s resistance zones) at $235 and $240 respectively. Intriguingly, the price did not stop there as Ethereum stepped above $245 and even closed in on $250 before hitting a snag at $247.
The lack of enough volume cut short the technical breakout. Note that the breakout above the descending trendline is likely to have contributed a lot to the gains accrued. Moreover, Ethereum climbed above both the 50 SMA and the 100 SMA in the 4-hour range. These moves encouraged the bulls to push for more gains with an aim to breaking the hurdle at $250.
Ethereum technical analysis
From a technical perspective, Ether is still in the able hands of the bulls. Looking at the RSI and the MACD, the bullish grip is very intact in spite of the retreat mentioned above. The RSI is moving sidelong at 70. The horizontal action means that a consolidation above $240 support could take precedence. In addition to that, a bullish divergence from the MACD puts emphasis on the growing bullish grip.
Generally, Ethereum is primed for more upward action, targeting $250. However, if gains are delayed, consolidation would carry the day. Apart from the support at $240, extended reversal would seek support at the 100 SMA ($236.09), 50 SMA ($232.23) and $230.
Related reading: Bitcoin Sentiment Analysis: Bitcoin paces towards $10,000 on PayPal crypto integration rumors
ETH/USD 4-hour chart
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