Ethereum Testing Crucial Support; Bulls Await a Catalyst
June 19th, 2019
Ethereum is changing hands at $268 after testing the support at $260. This comes after an impressive recovery from a June low created at $226.23. The recovery stepped above the 100 Simple Moving Average (SMA) at $255.76 further allowing the upward momentum to gain traction towards $280.
ETH/USD 4-hour chart
Unfortunately, the weakening Bitcoin momentum on hitting a snag at the psychological $9,400 faced by increasing seller congestion at $9,500 resulted in Ethereum hitting pause at $280. Correction from the resistance cleared the short-term support at $270 as traders decided to take profits.
Ethereum explored the region slightly below the Bollinger Band 4-hour lower at $263.42 and formed a low at $260 before the current weak recovery came into the picture.
Technically, Ethereum must once again prepare an assault at $280 supported by key technical indicators like the Relative Strength Index (RSI) 4-h. Trading above this key level would give the price more momentum to grind closer to $300.
At press time, the RSI is above the Average at 54 and gradually sloping upwards from levels around 47. If the traction continues into the overbought, we can expect ETH/USD to trend above the resistance at $280 and focus on higher levels heading to $300.
On the downside, immediate support is established by the BB 4-h lower. Once cleared, the recent low at $260 will cushion the retracement while the 100 Simple Moving Average (SMA) at 254.22 will come in handy. However, if losses overwhelm the bulls at this point, the downside is likely to gain traction towards $240 and $220 support areas.
Ethereum Key Technical Indicators
RSI 4-h: Upward slop shows strengthening momentum.
100 SMA 4-hour- Expected support around $254.
BB 4-h middle – Immediate resistance.
BB 4-hour support – Immediate support.