ETH Flirts With Critical $250 Line, Short-Term Price Analysis

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ETH Flirts With Critical $250 Line, Short-Term Price Analysis

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.

eth breaks falling wedge, 4h(source: TradingView.com)

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.

consolidation ending, daily chart eth/btc(source: TradingView.com)

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).

already nears the lows, double bottom(source: TradingView.com)

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

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