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Ethereum Price breaks Out Bullish As $240 Comes Back Into The Technical Picture

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Ethereum price plummeted on Thursday following the retrieval of some price swing in the market that was primarily associated with top Twitter accounts hacks that occurred recently. Since more than a week ago, Ether had remained pivotal at $240.

Prior to that, ETH/USD has blown up through the north while testing the resistance level at $245. Unfortunately, the gloomy action across the cryptocurrency market and importantly, Bitcoin, made it hard to sustain gains ahead of $250, in the stead, the price merely revised to $240.

The deterioration pushed Ethereum below various major support areas including the $235 area. As well as the 21-day Exponential Moving Average (EMA) through $230.

The regions that opposed the motion were the minor support at $228 and the 50-day EMA. Many analysts are of the opinion that if Ethereum price drops under the $225 support. It would be the end of the ‘altcoin season’ that is still in its early stages.

Ethereum Price breaks

At the moment, the price is still clenching above the 50-day EMA. Nonetheless, a comeback against the support turned resistance at $235 is a difficult task.

Technically speaking, buyers have just sufficient strength to clasp above the key support levels at $230, the 50-day EMA, and $228. The Resistance Strength Index RSI, for instance, is static at 50. This is a circumstance that primarily leads to consolidation.

The same horizontal trading action is enhanced by the MACD. The indicator is also clenching to the midline but a small bearish divergence hints that losses are not out of the picture.

In other words, although there are indications of a comeback, Ethereum has not shown enough parameters for a breakout. Moreover, the instability across the cryptocurrency market is still at the lowest levels in the last three months.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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