Ethereum price has behaved quite brilliantly within a span of 24 hours. Although the coin began to make considerable gains on Saturday, it hasn’t stopped a bullish momentum which has propelled its price beyond $230 on Friday.
Eth overcame crucial resistance levels at the $230 and $235 levels respectively. Coming with corresponding ups and downs, price scaled through the hurdles to touch the $240 mark. However, the long-held resistance at $240 is acting so strongly against the bulls as selling pressure begins to set in.
At the moment, it appears as though prices will have to stalk under the $240 area as bulls try to gather momentum. If Ethereum is able to clear the slowly accumulating sell wall currently materializing on exchanges, prices may have enough energy to overcome $240 and set sail for $250 mark.
At the time of writing, Ethereum changes hands at $239.50 after gaining about 4% in the last 24 hours. However, market capitalization grows alongside exchange volumes in the same timeframe. Both figures are hovering around $26.44 billion and $13.63 billion respectively.
Ethereum [ETH] Technical Analysis
On the 4-hour ETH/USD price chart, the pair appears to have recently returned from the overbought condition at 82.5. Now finding support below 60.0, the top trading pair is rejecting a plunge towards the 50.0 mid-level. As buying momentum builds up, we may see higher prices while ETH/USD tries to travel back to the overbought condition.
However, ETH/USD has recently undergone a slight retracement to the 0.23 Fibonacci retracement level. The formation of a bullish engulfing candle is confirming a new trend upwards. If this comes to play, we may see ethereum blasting through the $240 level towards a next resistance at $247 (0 Fib level).
In the event that prices make a pullback a bit more, this may send Eth/USD crashing towards $230 again. Below this, support lies at $225. A major support level exists at $220, a point that acted as a resistance for more than 6 weeks. To fall below this level will create panic and possibly keep prices lower for a long period of time.