Ethereum Price Forecast: $240 A Mirage As Long As ETH/USD Remains In Andrews Pitchfork Lowest Channel
- Ethereum’s failure to contain gains above $235 pokes holes in the potential for gains above $240.
- ETH/USD will continue with the bearish inclination as long as the price stays in the lowest channel of the pitchfork.
Ethereum is fighting tooth and nail to push the resistance at $235 and $240 in the rearview. However, selling activities at these two zones is not about to give the bulls an easy pass. Earlier this week, Ethereum dived under $220, trading a monthly low at $218. Recovery ensued as buyers took advantage of the lower price level. Ether stepped above $230 but bulls have not been able to make any significant gains above $235. The hurdle at $240 remains intact even as support at $230 is constantly battered.
ETH/USD 4-hour chart
At the time of writing, Ethereum is trading at $233. There was a break into the middle channel of Andrew’s pitchfork. However, the momentum lost steam before the midline was tested. A bearish reversal forced the bulls back in the lowest channel (blue). For this reason, the path of least resistance remains downwards. As long as Ether is stuck in this lowest channel, expect the sellers to be the dominating factor.
Consequently, the MACD confirms the bearish biased trend. Besides the indicator featuring a vivid bearish divergence, is also sloping downwards as a signal for a strengthening sellers’ grip. On the other hand, the RSI has slowed down the downtrend and is seeking balance above the midline (50). This means that selling activity is gradually slowing while giving way to consolidation. It is apparent that a breakout above $235 and $240 respectively would open the road for gains above $250.
Ethereum Intraday Key Levels
Spot rate: $233
Relative change: -0.4347
Percentage change: -0.17%
Trend: Bearish
Volatility: Low
High: $234.48
Low: $232.40
ETH/USD will continue with the bearish inclination as long as the price stays in the lowest channel of the pitchfork.
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The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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
Published at Thu, 18 Jun 2020 08:48:05 +0000
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