Ethereum continues it’s bullish run over the past 24 hours of trading, allowing price action to increase by a total of 8.5% bringing the price for Ethereum up toward $270. The recent price increase is largely due to the Bitcoin price surge, however, Ethereum is still holding very well against Bitcoin itself. Ethereum has now seen a 73% price increase over the past 30 days with a further 94% price surge over the past 90 trading days.
Source: CoinCheckup
In this article, we will take a look at the potential for Ethereum to continue to rise toward the $300 level before the end of May 2019. For Ethereum to reach the target level at $300, the cryptocurrency would need to increase by a total of 10% from today’s current market valuation. The last time Ethereum was at $300 was in September 2018 and therefore will require significant momentum to be overcome.
Ethereum remains ranked in the second position amongst the top-flight cryptocurrencies by market cap value as it currently holds a $28.76 billion market cap value.
Let us continue to take a look at the ETH/USD market and highlight some potential areas of resistance on the way toward $300.
Ethereum Price Analysis
ETH/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Taking a look at the ETH/USD daily chart above, we can see that In May 2019 alone, Ethereum had managed to surge by a total of 68% from low to high. The cryptocurrency had met resistance at the $278.95 level during mid-May 2019 which had caused ETH/USD to drop into support around the $228 level.
We can see that ETH/USD has recently rebounded from the support and is now attempting to make another test at the 2019 Ethereum high around $278.95.
What Is The Current Trend?
The current trend for Ethereum remains bullish at this moment in time. For this bullish trend to be invalidated, we would need to see Ethereum fall and break beneath the $228 support level.
Where Is The Resistance Toward $300 And Beyond?
If the bullish pressure continues to cause Ethereum to rise further higher, we can expect immediate resistance above the market to be located at the $278.95 May 2019 high level. If the buyers can break above here, further resistance above is then expected at the $280 and $290. This is then followed up with very strong resistance at the long term bearish .5 Fibonacci Retracement level (drawn in red) priced at $298. This long term bearish Fibonacci Retracement level is measured from the July 2019 high at $515 to the December 2018 low around $84.
If the bulls can clear the resistance at $298, they will be free to make an attempt at the target level at $300. Above $300, further higher resistance is then to be located at $310. Above $310, further resistance is then expected at the short term 1.272 and 1.414 Fibonacci Extension levels (drawn in blue) priced at $315 and $334, respectively.
What If The Sellers Regain Control?
Alternatively, if the sellers regroup and regain control to push ETH/USD lower, we can expect immediate support beneath the market to be located at $260 and $250. Beneath this, strong support closely followed at the previous bearish .382 Fibonacci Retracement level (drawn in red) priced at $247.
Beneath $247, further support lies at $240, $228, $213, and $200.
What Are The Technical Indicators Showing?
The Stochastic RSI is in a position to deliver a very strong signal to the bulls. The Stochastic RSI currently trades in extreme oversold conditions and is positioned to deliver a crossover above signal which would indicate a bullish press higher. Adding further to this bullish case, the RSI is also well above the 50 level which indicates that the bulls are in complete control fo the market momentum.
Conclusion
Ethereum most certainly has the potential to increase by 10% before the end of May 2019 to reach the target level at $300. Considering that the market has moved by a total of 8.5% in the past 24 hours alone, this should give some confidence to the fact that Ethereum can increase by 10% in 7 days.
