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ETH/USD Consolidates Its Price Action
- The pair consolidates around the 200 SMA at the H4 chart
- Situation unclear in a bearish scenario
Ether seems to be consolidating around the 200 SMA at the H4 chart. After a strong plunge since the last week of February, ETH/USD quotation is trading below the $233 handle. Such a move was made in the context of a retreat in the altcoins. It doesn’t seem to be strong enough as the “king of cryptocurrency”, Bitcoin, which has been posting wild moves across the board.
The pair is now re-testing the aforementioned moving average and the 50 SMA points to make a bearish crossover. However, Ethereum is looking to strengthen its price action to take a rally towards new highs, according to the H4 timeframe.
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Will Ether resume the bullish bias?
If the upside remains solid in the short term, the focus will shift towards the next key resistance at $251. Buyers will look for a breakout beyond that area to allow another higher leg to test the $274.39 level. Once such a region is cleared out by the bulls, the yearly highs could be the next tough nut to crack. Region also guards the resistance and round-figure level at $300.
Picture isn’t clear enough in a bearish scenario
To the downside, however, the situation has become unclear in the past hours. A strong demand zone was established at current levels. If that area gives up in favor of the sellers, Ethereum could plummet towards the $221.94 level. This should consolidate the bearish price action.
Furthermore, a break below that level should open the doors to test the $184.81 level in the first degree. Ahead of the $176.48 level, a strong resistance (now support) was formed during January.
Technical oscillators are pointing to the upside. The RSI indicator is consolidating its slope above the 50 level, favoring the bulls in the short term. Momentum is strongly pointing upwards and remains above the equilibrium zone.
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.