- Ethereum exchanges hands at $294 following a minor correction from highs slightly above $300.
- Ethereum poised for upside correction as technical levels remain intact.
Amid the current consolidation of Ethereum, investors are expecting a bullish breakout before the weekend session. While Ethereum technical levels are still intact, much of this boost is expected to come from Bitcoin’s price movement with a break into the $12,000 level.
ETH/USD 4-h chart
Looking at the 4-h chart for ETH/USD trading pair, one can tell that the downside has been largely limited. At press time, Ethereum exchanges hands at $294 following a minor correction from highs slightly above $300. The shallow correction appears to be seeking support at the confluence level established by the 23.6% Fib retracement level taken between the previous drop from $379.32 to a low of $264.37 and the Bollinger Band 4-h Middle at $291.61.
On the upside, acute resistance lies at the pivotal $300 level. For further upside movement, Ethereum must establish support above this level and push for gains into the bullish zone between $310 and $320. ETH/USD still has the potential to hit new 2019 highs in the coming weeks, however, this will depend on the near-term action at $300.
On the downside, as mentioned above immediate support is at $291.61 confluence level. Bulls must work hard to ensure that the price stays above this level. Otherwise, movements under it could lead to a further breakdown that could retest $280 and $270 support areas respectively.
The technical picture is still positive and intact, especially with the Moving Average Convergence Divergence (MACD) divergence increasing. The only way is up for Ethereum. Another bullish signal could occur when the price breaks above the 100 Simple Moving Average (SMA).
Ethereum Key Technical Indicators
Key Support Areas: $291.16, $280 and $270.
Critical Hurdles: $300, $320 and $360.
MACD: Increasing divergence suggests the bulls have control over the current price.
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