Ethereum (ETH) Attempts to Jump Over $238, Failure Will Attract Further Selling

Ethereum (ETH) Attempts to Jump Over $238, Failure Will Attract Further Selling

Key Resistance Levels: $225, $250, $275
Key Support Levels: $150, $125, $100

ETH/USD Long-term Trend: Bullish
Ethereum at present is consolidating above the $220 price level. Ether has been stable soon after the last bearish move to the current support. The question is, are we expecting more downward move? Honestly not likely. The current support may likely hold because Ether is now in the oversold region of the market.

When a coin is in the oversold, the selling pressure will gradually be exhausted. There will no downward movement of price. The most important aspect of the oversold condition is that buyers are expected to emerge to push the coin upward. In the meantime, ETH is currently above the support of the 26-day SMA.

ETH/USD – Daily Chart

Daily Chart Indicators Reading:
Ethereum has fallen below a 20% range of the daily stochastic. In the oversold region, the market is said to be in a strong bearish momentum. In this region, buyers are expected to take control of price as Ether resumes an upward move.

ETH/USD Medium-term Trend: Ranging
On the 4 hour chart, the coin has been in a sideways trend. The bulls have been contesting to break the overhead resistance at $290 but to no avail. On each attempt, the bulls were repelled. On the recent move, the bulls were resisted at a $280 price level. The market fell to a low of $210 but consolidated above $220.

ETH/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The 21-day SMA and 50-day SMA are sloping horizontally indicating that the coin is in a sideways trend. The Relative Strength index period 14 is level 49 indicates that the price is still in the downtrend zone. It is also below the centerline 50.

General Outlook for ETH
Unquestionably, Ethereum will resume its upward move if buyers image at the oversold region. The first step to this upward move is to break the minor resistance at $238. The bulls will retest the overhead resistance at $286 once the initial hurdle is crossed.

ETH Trade Signal
Instrument: ETHUSD
Order: Buy
Entry price: $288
Stop: $200
Target: $320

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.