Ethereum continues to trade sideways in the $242 to $247 range with very little change since the drop on June 4th. With volume low and sentiment neutral, traders appear uncertain which way this market could swing.
ETH/USD hit a low of $234.15 yesterday following a period of declining price but has since managed to climb back above $240, a level which is quickly proving to be a strong support point. Although the general consensus around Bitcoin and the wider crypto market is trending towards bearish, there is a possibility ETH could break upwards from this pattern.
What are traders saying?
Popular crypto trader The Crypto Dog (@TheCryptoDog) posted a bullish scenario for the ETH/BTC pair yesterday, saying it’s looking ‘mad bullish’. While ETH remains rangebound for now, a break above $260 could confirm his theory and indicate the first signs of a much-anticipated ‘alt season’.
Fellow trader and crypto-twitter commenter DonAlt (@CryptoDonAlt) sees a more bearish side to Ethereum and other altcoins. In a recent post, he outlines support and resistance zones for Ethereum (ETH), Litecoin (LTC), XRP and EOS, noting bearish retests on all four coins. He does admit however that his analysis will turn ‘insanely bullish’ should the assets break resistance.
ETH/USD Analysis
As mentioned earlier, the $240 level is holding strong and should provide support for now but a break below could take it all the way to $232, the low end of the 1-day Bollinger Band. Initial short term resistance will be met at $250 on the upside trendline and more strongly at $278 on the top of the 1-day Bollinger Band middle line.
The relative strength index (RSI) for ETH/USD remains neutral, with short-term moving averages suggesting a possible decline. However, the trend remains positive in the long-term and a downward reversal is not yet confirmed.