Ethereum broke above the $200 level with a daily close and managed to stay above the level for more than two days before rejecting bears. Therefore, Ethereum is much potential to move further high with a target of $250. Read more to find further insights into today’s ETH/USD Technical Analysis.
May 05, 2020, | AtoZ Markets – Ethereum was very volatile below the critical $200 level but managed to stay above the price with a big candle breakout. Later on, the price got some correction and again led to reject bears with a bullish daily close above the $200 level. As per the current price action, ETH has a higher possibility to move higher with the support of the dynamic level of 20 EMA in the coming days.
Some researchers have identified that JPMorgan, IBM, Microsoft, Amazon, as well as Walmart are investing in the Ethereum. They observed wallet addresses associated with these companies are seen to invest in Ethereum. Therefore, The Fortune 500 companies may accumulate Ethereum, as the outlook for the ETH price is stable.
Ethereum Is Bullish Above the Critical $200 Level
ETH is corrective above the $200 level with a bearish rejection and a bullish daily close. After having a strong bullish daily close above the $200, price got some correction as profit-taking. As the price managed to have a bullish impulsive close above $200, it can move higher in the coming days.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, ETH is currently residing above the $200 area after having a bearish rejection. Ethereum’s current price action is corrective, which indicates that it is the potential to climb higher. So, if the price can have a bullish impulsive 4-hour close above $210 area, the bulls may push the price higher towards $250 in the process. Conversely, if the price breaks below $200 with an impulsive bearish candle, the bears may push the price down towards $190.
Furthermore, the price is residing within the dynamic level of 20 EMA, which may act as a strong support to push the price higher. In contrast, the price may test the dynamic level again, and any bearish rejection from it would increase the bullish possibility in the price. Besides, the MACD lines are below the negative zone but approaching the zero levels, which indicates that bears are losing momentum, and bulls can hold the momentum further.
Can Ethereum Reach Reach at February’s High at $250?
According to the Daily chart, ETH had a bullish daily close above the $200 level with some correction. As per the current price action context, the price may get more correction before creating a new high. So, if the price approaches the $200 area again and bounces higher with the support of the dynamic level, the bullish trend may continue higher towards $$250.
Image: Ethereum Daily Chart
The dynamic level of 20 EMA is below the price, along with the Kijun line and Tenkan line. Therefore, the price may pull back to the downside as Mean Reversion, and the Kijune line and Tenkan line may work as a confluence of the dynamic level of 20 EMA. Besides, the price is also supported by the Kumo Cloud, which means bulls can push the price higher. Moreover, the MACD histogram is residing above zero levels, which is an indication of buyers’ dominance.
To conclude, Ethereum successfully broke above $200 area and may move higher. On the other hand, a strong bearish daily close below the $200 level may alter the current scenario.