Ethereum [ETH] is facing uncertainty after breaking the $200 mark earlier this month and is continuing to trade below the $230 mark. However, the charts seem to indicate that a slight upward trend may be in order.
The 20 DEMA is at $227 and is providing a resistance for the post $230 run. The $208 – $225 uptrend may provide support for the next rally as well.
Stochastic indicator is in the middle of the overbought and oversold territories after briefly touching the overbought territory today. It is forming a bearish divergence pattern with the price finding higher highs and the stochastic touching lower high.
The 20 DMA is providing a support for a rally at a price of $220. The price bounced off this to engage in the last upwards move.
A sharp uptrend from $208 to $225 might provide the momentum for a further upwards run.
The MACD is set for a bullish line crossover to occur with the histogram tending towards zero. This, coupled with the strong uptrend, might see Ether breaking the $250 mark.
The Bollinger Bands upper limit is on par with a price at $227, indicating the strength of the upwards movement. The wide bands indicate volatile movement in the price.
The EMA is providing a floor for the uptrend and is currently at $215. The channels between $195 – $210, and $210 – $225 make the price poised for a breakout.
The 20 DMA is at $226, with a bullish divergence showing on the RSI as it makes higher highs. It recently emerged from oversold territory and is making a strong comeback into the buy zone.
The price of Ether is at a crossroads. The sentiment, in general, is low for the currency, considering the FUD being spread around about it.
If that sentiment subsides, the coin could engage in a bull run that could see it testing the $250 psychological barrier and the $290 mark it saw before its decline.
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