Ethereum has broken a major resistance at $220 while stabilizing the price above that resistance level. The top cryptocurrency launched an assault to record higher prices on May 28 and has now successfully scaled through major hurdles while the bulls are charging to run for the $230 mark.
In the short term bull run that escorted the price of ethereum to its current price of $221, the cryptocurrency gained a considerable 7% within the last 24 hours. Also, market capitalization increased alongside exchange volume within the same timeframe. Both values flutter around $24.57 billion and $13.61 billion respectively.
While prices remain within the perimeter of the $220 resistance, the bears are launching concurrent unsuccessful attempts to pull the price down by a little margin. However, buying pressure equalizes both sides of the market sentiments.
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ETH/USD 4-Hour Price Chart
On the ETH/USD 4-hour timeframe, prices took a bullish turn after a full retracement occurred at $196.65 (0 Fibonacci retracement level) on May 26, 23:30 hours UTC. At the time, the price surged due to buying pressure and touched $205 as of May 28, 01:30 hours UTC.
Sellers tried to take turns but couldn’t pull the price much downward before it continued its bullish path. The pair printed a shooting star candle, which further confirmed that the bulls were still in charge.
As the price surges through higher heights, we expect a pullback due to a rising sell wall on major exchanges by traders who are shorting or taking profits. This may drag the price down by a little margin.
If this comes to play, prices are expected to find support at the immediate 1.618 Fibonacci retracement level ($220 mark). Below this, additional supports lie between $217 and $215 ( 1.4 and 1.2 fibo levels respectively).
In the event that the buyers rally again for a bull run, immediate resistance lies at $225. If the price manages to escape this level, it may cruise towards $230 more easily than we think to establish support in the area in the near term.