ETH Flirts With Critical $250 Line, Short-Term Price Analysis
Ethereum (ETH) is looking interesting just under critical $250 mark, after a confluence of patterns and indicators suggest strength may be slowly building under this level.
We first look at the four hour ETH/USD chart. We note that ETH has been consolidating down since the end of May in what looks like a falling wedge pattern – typically a bullish pattern.
A break from this downtrend came on June 10, with a successful retest of the breakout area yesterday. The only red flag here is the modest trading volume attending the breakout.
We also see that ETH/USD has retaken and held the 55 hour EMA, an important typical moving average. A continued compression here, between uptrending moving averages and the $250 area (red band), suggests a break up – but ETH will have to hold the 55 EMA during any retest.
This might become difficult to do, as ETH/USD largely mirrors Bitcoin’s erratic price swings within a dangerous chop range. We also see a what may be a doji candle on the top of the reject uptrend formation – suggesting some correction during the day (June 12).
Looking at the ETH/BTC chart, we can see a separate and lengthy consolidation pattern playing out, and slowly nearing its apex – perhaps within the month. And again, the 55 hour EMA is marking the formation’s important bulwark, as price neatly fluctuates above and below it.
A daily closing above this average today would perhaps be cause for confidence in a break up. The formation, coming off a very strong break up, is inherently bullish – especially considering how ETH/BTC was already trending near historic lows, and has double-bottomed between December and now (see below).
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