Ethereum price (ETH) is moving but does it have enough ‘umph’ to overcome the $250 resistance?
Ethereum Price Analysis: Market Overview
In mid-May Ethereum mirrored Bitcoin’s parabolic move and similar to Bitcoin, ETH currently trades within a narrowing symmetrical triangle. Over the coming week, traders should expect Ethereum price [coin_price coin=ethereum] to make a drastic move.
As many analysts have already pointed out for Bitcoin, symmetrical triangle patterns have typically had a 60% chance of continuation after the asset has advanced approximately 73% of the triangle toward the apex.
ETH/USD 4-Hr Chart
At the time of writing ETH is pinned under the middle arm of the Bollinger Band indicator and the daily MACD remains in overbought territory and on the verge of a bearish cross. On Thursday, ETH briefly dropped below the 50% Fib retracement level to test the support near $230 and $249 is the most immediate resistance.
As shown on the hourly chart, a move to the overhead descending trendline ($254.29) would meet the neckline of the inverted head and shoulders pattern and also set ETH above a major resistance at $250. Volume has tapered off and ETH tightens up and the possibility of a high volume spike could quickly send ETH back to $260 and above.
The ETH-BTC pairing has lost the daily uptrend and ETH is on the verge of dropping below the 12 EMA. There is also a bearish divergence on the daily MACD on bear volume is eclipsing purchasing volume.
Ultimately, over the short-term ETH needs to move above the $250 resistance in order to continue toward $260 and above.
Barring a strong upside move from Bitcoin or a bull volume spike for ETH, the altcoin could drop to the lower arm of the tightening triangle, which aligns with the 23.6% Fib retracement level at $237.18.
ETH price is likely to continue trading sideways within the triangle and as it narrows traders can expect a strong move in either direction.
Do you think ETH will recover to overtake $260 in the next 24-hours?
[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for the analysis are provided by TradingView.]
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Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase.