Ethereum Price Analysis: ETH/USD Bear Trap At $250 Culminates In Collapse To $240


Ethereum 2.0

Ethereum Price Analysis: ETH/USD Bear Trap At $250 Culminates In Collapse To $240

  • Ethereum price finds support above $250 after a failed attempt to break $250 for the second time this week.
  • ETH/USD likely to settle in consolidation as per the MACD; a move that will help keep the focus on $250.

Ethereum price rushed towards $250 on Wednesday during the European session. The move saw other cryptocurrencies such as Ripple embark on a barrier-breaking exercise at $250. Ether closed in on $250 but a break above the critical level did not materialize. Instead, an immediate reversal occurred sending the second-largest cryptocurrency back towards $240.

At the time of writing, Ethereum is trading at $242. Support above $240 has come in handy to stop losses into the $230’s range. Aiding to hold Ethereum above $240 is the 50 Simple Moving Average in the 1-hour range.

The technical picture turned bearish in a blink of an eye taking the attention from $250 back to $240. The Relative Strength Index (RSI) dived sharply from the overbought region (70). The indicator currently holds the ground marginally above 40. If a reversal occurs above the midline (50) then bulls could eventually renew their strength and pull Ethereum above the short term resistance $245 as hope for trading above $250 stays alive.

ETH/USD 1-hour chart

ETH/USD price chart
ETH/USD price chart by Tradingview

Looking at the Moving Average Convergence Divergence (MACD), ETH/USD has the potential to stay above $240. While gains back to $250 would be an uphill task, there is likely hood of consolidation taking effect. This way, Ethereum can avert declines under $230 altogether as it waits for the next run-up above $250.

Ethereum Key Intraday Levels

Spot rate: $242

Percentage change: -0.5

Relative change: -0.2%

Trend: Bullish

Volatility: High

Author: John Isige
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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John Isige 707 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
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