- Ethereum consolidation is likely to touch $200, even drop to $190 before the next significant breakout to $300.
- A break above the descending trendline resistance could push the throttle forwards for the next breakout.
Ethereum is having one of the healthiest consolidation phases. This follows a correction under the descending trendline resistance. Before the correction, Ethereum focuses on breaking boundaries including $190, $200 and $220.
Several support areas tried but failed to cushion the drop. The initial tentative support at the 61.8% Fib retracement level taken between the last swing high of $228.12 to a swing low of $196.65 gave in to the selling action.
ETH/USD 1-hour chart
The simple moving averages; SMA 50 on the one-hour and the SMA 100 also caved in. The sellers took advantage to push the price lower towards $205 (current support area). Although eyeing $200 as the support area, Ethereum reversed the trend stepping above $2010 over the weekend.
However, the upside has remained capped at the 50% Fibonacci level. Besides, the SMA 50 cross under the longer term SMA 100 meant that a lower consolidation was imminent. At press time, ETH/USD is changing hands at $219 amid a building bullish momentum.
On the brighter side, the moving average convergence divergence clearly shows bullish action isn’t dead. The divergence and consolidation between $205 and $210 are likely to give way to a breakout above the short-term trendline resistance.
A-Pro analyst on Tradingview, Blorenz says that Ethereum could touch $200 in the short-term and even trade closer to $190. He believes $190 to a very solid support which will give long-term results in gains to levels between $255 and $300.
“The highly anticipated descending wedge pattern came in perfectly, and the breakout is now likely to see some follow up action.”
Ethereum Key Technical Indicators
Spot rate: $208
Relative change: -2
Key Support: $200 and $190
Hurdles: $210 and $230