The price of Bitcoin (BTC) has shown strength in recent days, as the price rose from USD 9,300 to USD 9,800. However, more strength is seen in Ethereum’s Ether (ETH), the second largest crypt currency by market capitalization, as this crypt currency recovered from USD 225 to USD 246.
Let’s take a look at the ETH charts, as Ether has significantly outperformed BTC over the past few days. The main question is: can Ethereum finally start catching up with Bitcoin?
Ether faces a 250 USD resistance as the final hurdle before accelerating to 300 USD
The crucial support to sustain, between USD 215-220, has witnessed a brief test and an immediate rebound. Such a rebound implies that buyers are eager to intervene and are significantly raising the price.
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Essentially, Ether is performing above the 100-day and 200-day Moving Average (MA), which is a bullish indicator. Along with that strong signal, the volume has been increasing lately.
Often, volume precedes price, and combining this fact with the lateral range that ETH has been in, an increase in volume shows accumulation.
Similarly, the price has been in an uptrend since March 12, as the cryptomone is continually turning the previous resistance into support. The previous change from support to resistance was in the area of USD 217-222.
Such a change in support/resistance implies greater upward strength, with USD 250 as the next target. Ether’s price remains fairly close to this resistance zone.
If ETH breaks the USD 250, then the USD 290 level may not hold like the last time, as that is not a significant resistance zone. Most likely the ETH/USD will experience a rapid rise to USD 330 or even USD 360.
Such a rally would represent a new higher peak, which is another bullish sign. The term „disbelief“ could soon be applied.
The short-term test of USD 234 is not out of the question
The 4-hour chart for Ether shows a clear break from a downward trend with the price rising towards the resistance level of USD 247-252.
However, does this mean that Ether is likely to break $250 at once? Definitely not because a wider range is expected before a substantial break through the resistance. In other words, this would mean that Bitcoin breaks the 10,500 USD barrier.
Ethereum trading volume increased more than 100% in the last 24 hours
In the short term, a possible retreat to the USD 232-235 level is not out of the question and would be healthy. In that sense, the previous support of USD 234 should act as a support, feeding a possible rally above USD 250.
Finally, as the resistance between USD 247-252 has been tested several times, the resistance is weakening. A renewed test of the resistance zone would probably end in a breakout.