- Ethereum outperforms other altcoins with gains as high as $326.
- Consolidation in the narrow range likely to give way to further gains heading to $400.
Ethereum has been the best performing digital asset after Bitcoin since the surge over the last weekend kicked off. For the first time in 2019, ETH/USD exchange hands above the key $300 hurdle. In addition, gains extended above $320 before forming a high around $326.
ETH/USD 4-h chart
The gains come after had just recovered from the lows reached in June close to $226. The recovery stepped by the 100 Simple Moving Average (SMA) resistance $254 giving the momentum a push above $260 and later beyond $280. The Bitcoin driven surge added to the rising momentum for Ethereum price.
Although Ethereum is trading at the highest levels in 2019, movements upwards have stalled within a narrow range between $300 (support limit) and $320 (resistance limit). Sustained correction past $320, could the key to further movement towards $400.
In the meantime, the support at $300 is vital and will help mitigate retracements south. Other key levels to look out for are $280 (buyer congestion zone), $260 (buyer congestion zone) as well as $220 (primary support).
Technical analysis shows Ethereum having a huge bullish bias in the short-term. The Relative Strength Index (RSI), for instance, has been forming a higher low pattern. The upward trend shows that in spite of the up and downs, ETH/USD could continue moving upwards above the trendline support.
Moreover, the Moving Average Convergence Divergence (MACD) suggests buyer exhaustion and upward that is strongly limited. However, as long as the indicator stays within the positive region, Ethereum can eventually shoot above the key $320 resistance and increase the gains above $330.
ETH Key Technical Indicators
RSI 4-h: Higher low pattern suggestion a growing bullish momentum.
MACD 4-h: Sustained position in the positive region could give way to gains above $330.
Key Resistance: $320
Key Support: $300
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