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1 June 2023
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Ethereum Price Forecast: ETH/USD knocking on descending trendline resistance

  • Ethereum trades between the 100 SMA resistance and the 50 SMA support.
  • ETH/USD breakout above the descending trendline to pave the way for gains above $240.

Ethereum made a run for $240 after another dive to $220 on Monday. The trend reversal overcame the resistance at several levels including $225 and the 38.2% Fibo taken between the last swing high of $290 to a swing low of $218. In addition to that, the price stepped the 50 SMA in the 1-hour range. Unfortunately, the momentum lost steam under the descending trendline resistance.

At the time of writing, Ethereum is trading at $232.37 while dealing with the same trendline resistance. The prevailing trend is relatively bullish but I would say that buyers lack the volume and catalyst to sustain gains above $235. Looking at the technical picture, the RSI shows that Ethereum could embrace a period of consolidation mainly between $230 (support) and $235 (resistance). A bullish divergence above the MACD confirms the presence of the bulls, therefore, the consolidation will have an inclination to the upside.

Support has been established at $230 as highlighted by the 38.2% Fibo and the 50 SMA. Losses below this level could find support at $225, and the narrow buyer congestion zone at $218 – $220. Note that, Ethereum’s prominent trend remains sideways with an upward inclination.

ETH/USD 1-hour chart

ETH/USD price chart

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