- $200 range-bound Ethereum loses steam at $187.66 but this was only a small setback.
- Ethereum on verge of another breakout; likely to close the trading on Monday above $180.
Ethereum is leading the market in recovery in the wake of Bitcoin price surge last week. The fireworks explosion last week saw Ethereum correct above the 61.8% Fib retracement level between the swing high at $187.66 and a swing low of $140.06. The buyers pulled ETH/USD to $180 (last week’s resistance congestion zone). However, the bulls ran out of their mojo and lost the grip hence allowing the bears to sweep in. The declines that following could not be stopped at $170 and 160 support levels. Ethereum stretch to the support congestion zone at $155 before resuming the uptrend.
The trend over the weekend session was incredibly bullish as it allowed the buyers to reverse the trend above $180. With all eyes glued on $200, Ethereum formed a high at $187.66. The uptrend is mainly supported by the rising trendline. Apart from the trendline, ETH/USD is taking advantage of the high daily trading volume, which is above currently close to $10 billion. The market cap for the crypto has also been on the bullish path to the current $18.6 billion.
In the meantime, Ethereum is changing hands at $178. There has been a retracement from the new 2019 highs at $187.66. In spite of the correction, Ethereum has maintained the uptrend above the trendline. Therefore, expect ETH/USD to close the trading on Monday above $180. However, a correction to $200 is still possible especially considering the positive signals coming from indicators like the RSI 4-hour. The RSI at 60.00 is currently revamping the trend upwards and could soon brush shoulders with 70.00.
Another bullish indicator is the fact that the 50 SMA continued to increase the gap above the longer term 100 SMA in the 4-hour range. On the downside, Ethereum will find support at $176 in the event declines reverse the trend. The former resistance at $61.8% Fib roughly at $170 is position as a significant support area. Other support targets can be observed at $155.00, $140.00 and the key support zone at 132.00.
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