Ethereum has come under renewed buying interest over the last five days, rising back above the 20- and 40-simple moving averages (SMAs) in the daily chart.
The positive bias in the near term is also supported by the RSI, which has been hovering above the 50-neutral level in the past few days, while the stochastic oscillator entered the overbought zone.
If prices continue to head higher, resistance should come from the 184.00 barrier and the five-month high of 186.00. A rise above this zone would reinforce the medium-term bullish view and open the way towards the 190.00 psychological level.
However, should a downside reversal take form, immediate support would likely come from the 20-day SMA around 164.40 and the 23.6% Fibonacci retracement level of the upleg from 80.00 to 186.00, around 161.00. A break below this line could drive the Ethereum to challenge the 40-day SMA, currently at 154.40 and the 38.2% Fibonacci of 145.35.
Overall, Ethereum has been developing in an ascending move since December 2018 and bullish orders are expected after a daily close above the five-month high of 186.00.
by Melina Deltas, XM Investment Research Desk
Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities.
Melina studied Pure Mathematics at Lancaster University and has a Master’s Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).