Is Ethereum Price Heading To $220 Following Triangle Pattern Breakout?


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Is Ethereum Price Heading To $220 Following Triangle Pattern Breakout?

  • Ethereum breaks out of triangle resistance but hits a snag at $216.
  • ETH/USD could settle in consolidation around $212 ahead of another attack on the resistance at $220.

Ethereum bulls have been keen on sustaining gains above $200 since the breakout in the previous month. ETH/USD hit highs around $227 but immediately plunged to $195. The good news is that buyers wasted no time reclaiming some of the lost ground above $200. There was, however, a struggle in clearing the resistance at $210 especially with the triangle resistance stay strongly in place.

Bitcoin (BTC) surge above $10,000 on Thursday had a slight effect on Ethereum as the price overcame a couple of key resistances; the triangle resistance and the 50 Simple Moving Average. ETH/USD managed to rise to weekly highs of $216. At the time of writing, a retreat is testing a short term support at $212.

In spite of the minor adjustment from the recent highs, Ethereum buyers have their eyes glued on breaking the seller congestion zone at $220. A sideway trading action is likely to take center stage first as the Relative Strength Index (RSI) starts to move horizontally above 50 (average). This consolidation could allow bulls to gather strength in order to take the fight to the resistance at $220, $230 and $250.

ETH/USD 4-hour chart

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

On the downside, apart from the support at $212, the 50 SMA will also try to stop losses in case of a reversal. $205 has functioned as a support in the past while the 100 SMA (currently at $200) is standing out as a key area of interest. Other levels keep an eye on include $195 (this week’s support), $190 as well as $170.

Ethereum Key Intraday Level

Spot rate: $212.81

Relative change: 0.26

Percentage change: 0.16%

Trend: Sideways trading

Volatility: Low

 

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 761 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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