- Ethereum stalls under $210 resistance despite the 4% gain on the day.
- A forming falling wedge pattern coupled with the correlation to the Bitcoin price is a key factor to ETH/USD surge to $240.
Ethereum has been struggling to stay afloat the critical level at $200. Following April surprise move to $227, bears crept back forcing Ether down through key support levels at $210 and $200. A support established at $195 put an end to the selling action and averted a possible dive under $190 and towards the major support at $170.
Meanwhile, ETH/USD is trading at $206 after adding over 4% to its value on the day. There have been attempts to sustain gains above $210 this week but the seller congestion at $212 did not give the bulls a chance. At the time of writing, Ethereum is trading between the 50 Simple Moving Average (SMA) resistance ($209.27) and 100 SMA support (currently at $198.22).
ETH/USD 4-hour chart
A sideways trading action seems likely especially with the Relative Strength Index (RSI) starting to move sideways at the average (50). However, if the ongoing bullish interest stays put. There is a chance that the price could spike higher as the bulls aim for a falling wedge pattern breakout.
On the other hand, Bitcoin (BTC) is nearing its 2020 halving. Although, the cryptoasset has surged into the $9,000 range, a pre-halving breakout above $9,500 and targeting $10,000 is on the table. If the Bitcoin rallies before Monday, Ethereum could also explode upwards due to the correlation; coupled with the described falling wedge pattern breakout. On the upside, $240 is the medium term target but the potential to hit levels towards $300 is massive especially in the this halving period.
Ethereum Intraday Key Levels
Spot rate: $206
Relative change: 6.50
Percentage change: 4%
Trend: Sideways ranging