Analysis: Ethereum Price Might Gain Momentum Above $ 220 Resistance

Ethereum price is currently consolidating against the USD and the price should stay above $220 mark for a forward rally. Here is the Ethereum Price technical analysis for the short-term trading. 

16 October 2018, AtoZMarkets Yesterday, the price of Ethereum had a bullish rally where the price of the coin reached the high of $240 mark, but price pulled back to the lows of $ 215. Ethereum formed a strong resistance at the $230 mark and that price level had not been broken for about a month.

Moreover, Ethereum Foundation was awarded $3 million of grants for several blockchain startups and developers as part of its ongoing grant program. The Ethereum Foundation Grants Team released its fourth wave of grants. A total of $2.8 Million was awarded to 20 different individuals or groups for work on client diversity, usability, scalability and security.

On Monday, the team commented:

"We would not exist without the time and energy that you put into Ethereum. While the program continues to grow, we will increasingly continue to involve more community members in the decision making process."

Ethereum Technical Analysis for Short-term

Yesterday, the price of Ethereum surged above the $225 and $230 resistances. A new weekly high was formed at $242 before the price corrected sharply lower. Looking at the daily chart of ETHUSD, the pair declined below the $230 and $225 mark. There was also a break below the 61.8% Fib retr. level of the last ride from the $195 low to $242 highs.

However, the buyers were successful in preventing declines below the $208-210 support area. A low was formed at $208 and later the price recovered above the 25 SMA. The price recovered above the 23.6% Fibo. retr. level of the recent decline from the $242 high to $208 low. Moreover, there was a break at major resistance zone at $216.00 to clear the path for more gains.

If the price of Ethereum settles above the $215-216 zone, there could be more upsides in the near term. The next resistance is near the 50% Fibonacci retracement level of the recent decline from the $242 highs to $208 lows at $225 levels.

Also, the 100 Simple moving average is above the long-term 200 moving averages, which means that the path of least resistance is to the upside for short-term. The mentioned parameters suggests that a upward rally towards the next resistance is likely to be seen in upcoming days.

Above $225.00 handle, Ethereum price will most likely to retest the $230 resistance zone. On the other hand, if there is a downside correction, the price may find support near the $212 level and the 25 SMA. The current price action on the daily charts is positive above the $210 and $212 supports. Therefore, Ethereum price is likely to resume its upside move above the $220 level.

  • The Relative Strength Index placed at period 14 is valued near 50 which signals "Neutral" in weekly time-frame.
  • The William%R signals the neutral action on the short-term time-frame.
  • MACD(12,26) – "Sell" signal in weekly charts.
  • ATR(14) signals Ethereum is less volatile.

Ethereum Pivot Points

Ethereum has a daily supports near $190 level and resistance near $240 level.

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