As Bitcoin has only increased by around 12% over the past 7 days, the recent Ethereum price increase is largely due to the recent rebound seen within the ETH/BTC market. Ethereum rebounded against Bitcoin at the 0.03 BTC level to rise to where it is currently trading around the 0.0325 BTC level.
In this article, we will take a look at the potential for Ethereum to rise and reach the $300 level by the end of May 2019, basically by the end of tomorrow. For Ethereum to reach the target level at $300, the cryptocurrency must rise by a total of 5.5% from the current price. An increase of 5.5% within the next 36 hours, before May finishes, is entirely possible. However, this will be largely dependent on either ETH/BTC continuing above 0.0325 BTC or BTC/USD surging further higher above $8,000.
Ethereum is currently ranked in 2nd position, as the recent price increase has caused the market cap value to climb above the $30 billion level.
Let us continue to take a look at the ETH/USD market and highlight some potential areas of support and resistance moving forward.
Ethereum Price Analysis
ETH/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Analyzing the ETH/USD daily chart above, we can see that Ethereum had been struggling to make any movement above the $271 level during May 2019. Each time Ethereum would approach this area, the increase would stall and roll over.
However, the recent price increase has now allowed Ethereum to break above $271 and climb above further resistance at the $278 and $280 levels to reach where it is currently trading at around $284.25.
What Is the Current Trend?
The current trend for Ethereum remains bullish in the short and the long term. For this bullish trend to be invalidated, we would need to see Ethereum fall and break beneath the $228 support level. If Ethereum would continue to fall beneath $200, we could consider the market as bearish.
Can We Hit $300 Before May Ends?
With little over a day and a half remaining, until May 2019 completes, it will be difficult for Ethereum to continue to rise and hit $300. However, it is still very possible, as Ethereum will only need to rise by a total of 5.5% from the current price.
If the buyers do manage to start pushing ETH/USD higher, we can expect the next level of serious resistance to be located at $290. Above this, further higher resistance will be expected at $295 and then at $298.43. The resistance at $298.43 is provided by a long term bearish .5 Fibonacci Retracement level (drawn in red) measured from the July 2018 high to the December 2018 low.
If Ethereum is successful in overcoming the resistance at $298, it will be free to make an attempt at the $300 target level.
Above $300, further higher resistance can then be expected at the $310, and then at the short-term 1.272 and 1.414 Fibonacci Extension levels (drawn in blue), priced at $315 and $334. Further higher resistance is then located at the bearish .618 Fibonacci Extension level (drawn in red), priced at $349.
What If the Sellers Resume Control?
Alternatively, if the sellers regroup and begin to push the market lower, we can expect support toward the downside to be initially located at the $278 and $271 levels. Beneath this, lower support can be located at $247, $240, and $228.
If the selling continues further below $228, we can then expect more support toward the downside to be located at $213 and $200.
What Are the Technical Indicators Showing?
The Stochastic RSI recently produced a bullish crossover signal in oversold territory which had resulted in the recent push higher. If the Stochastic RSI can continue to climb higher, we can expect the bullish pressure to continue to increase. Furthermore, the RSI is above 50, which indicates that the bulls are in control and the price still has room to travel higher before entering overbought conditions.
With little over 36 hours left until May 2019 ends, it will be a tough task for Ethereum to reach $300. However, as the momentum is already on the side of the bulls within Ethereum, it is still entirely possible.
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