Ethereum Price Analysis: ETH/USD In Grave Danger, Free-fall To $240 Beckons


Ethereum ETH

Ethereum Price Analysis: ETH/USD In Grave Danger, Free-fall To $240 Beckons

  • Ethereum’s breakout above the triangle pattern met resistance at $250.
  • ETH/USD battles to contain losses above $245 and keep the focus on $250 and $260.

Ethereum followed in the footsteps of Bitcoin once again with gains targeting $250 and $260 respectively. Bitcoin corrected above $9,900 but the bulls lost momentum before hitting $10,000. A retreat is currently ongoing as Bitcoin buyers struggled to reclaim every inch of the ground towards $10,000.

Ethereum also advanced upwards from the consolidation range above $240. The price tested the $250 seller congestion zone for the first time this week. This brief rally was as a result of a technical breakout above a symmetrical triangle pattern. Unfortunately, the breakout was unsupported fundamentally due to low trading volume and buying interest. A good number of traders are not convinced that Ether is ready for roll towards $260 and $280 respectively.

For that reason, ETH/USD is trading marginally above the short term support at $245. The same area is home to the 50 Simple Moving Average (SMA) in the 1-hour chart. The Relative Strength Index (RSI) in the same 1-hour range has slowed down the downtrend due to the rejection at $250. The indicator is pointing north as a signal for increasing buying activities.

ETH/USD 1-hour chart

XRP/USD price chart
XRP/USD price chart by Tradingview

As long as the bulls can hold above $245, the potential for gains above $250 will remain intact. Traders should also watch out for an up-trending RSI likely to signal a stronger bullish momentum. Apart from the support at $245, an extended reversal would seek cushion at $240, $235 and $230.

Ethereum Intraday Levels

Spot rate: $246

Percentage change: -0.59%

Relative change: -1.41%

Trend: Bullish

Volatility: Shrinking

 

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 753 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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