Ethereum (ETH) picked up momentum after sustaining above $197.75 on Feb. 5. The sharp rally of the past three days carried the price above the overhead resistance at $223.999, which is a positive sign. If the price can sustain above $223.999, a move to $235.70 is possible. I expect the bears to mount a stiff resistance in the $223.00-$235.70 range. The overbought reading on the RSI also suggests a few days of consolidation or a minor correction. Therefore, the traders can book partial profits in this range and tighten the stops on the remaining long positions to $190.
I anticipate the bulls to buy the next dip to $197.75. A bounce of this level will increase the possibility of a break above $235.70 but if the level cracks, the ETH/USD pair can dip to the 20-day EMA at $183.70.
I anticipate the bulls to buy the next dip to $197.75. A bounce of this level will increase the possibility of a break above $235.70 but if the level cracks, the ETH/USD pair can dip to the 20-day EMA at $183.70.