Ethereum Surging 4% Higher Ahead Forming Falling Wedge Pattern Breakout To $240
- Ethereum stalls under $210 resistance despite the 4% gain on the day.
- A forming falling wedge pattern coupled with the correlation to the Bitcoin price is a key factor to ETH/USD surge to $240.
Ethereum has been struggling to stay afloat the critical level at $200. Following April surprise move to $227, bears crept back forcing Ether down through key support levels at $210 and $200. A support established at $195 put an end to the selling action and averted a possible dive under $190 and towards the major support at $170.
Meanwhile, ETH/USD is trading at $206 after adding over 4% to its value on the day. There have been attempts to sustain gains above $210 this week but the seller congestion at $212 did not give the bulls a chance. At the time of writing, Ethereum is trading between the 50 Simple Moving Average (SMA) resistance ($209.27) and 100 SMA support (currently at $198.22).
ETH/USD 4-hour chart
A sideways trading action seems likely especially with the Relative Strength Index (RSI) starting to move sideways at the average (50). However, if the ongoing bullish interest stays put. There is a chance that the price could spike higher as the bulls aim for a falling wedge pattern breakout.
On the other hand, Bitcoin (BTC) is nearing its 2020 halving. Although, the cryptoasset has surged into the $9,000 range, a pre-halving breakout above $9,500 and targeting $10,000 is on the table. If the Bitcoin rallies before Monday, Ethereum could also explode upwards due to the correlation; coupled with the described falling wedge pattern breakout. On the upside, $240 is the medium term target but the potential to hit levels towards $300 is massive especially in the this halving period.
Ethereum Intraday Key Levels
Spot rate: $206
Relative change: 6.50
Percentage change: 4%
Trend: Sideways ranging
Volatility: Shrinking
A forming falling wedge pattern coupled with the correlation to the Bitcoin price is a key factor to ETH/USD surge to $240.
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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, 07 May 2020 04:48:23 +0000
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