Ethereum's decision time: Breakout to $300 possible

20 Jun, 2019
by Lourens Pepler
Price Analysis
Ethereum's decision time: Breakout to $300 possible

It's been almost a month that ETH has been trading between the range of $280 and $230. With Ethereum failing to fall and stay below the $230 level, could this indicate that it is now ready for a breakout to $300? This is our ETH analysis for 20 June 2019.

Highlights:

- 4-hour momentum bullish

- Daily RSI sell signal?

- Possible dip to $240 lies ahead

Starting off with the 4-hour chart to look at the bullish scenario first, we are able to see price break resistance and is still trading above it. Looking at RSI we notice that it is above the downtrend we had and that momentum found support above 50. A turn in momentum here would cause an increase in price, which could bring ETH to near $300.

ETH/USD chart provided by Tradingview

Zooming out to the daily chart, to get a better view of our fib lines from the initial impulse wave, we can see that ETH is currently at the 227% fib resistance line. A further increase in price would take ETH to the next fib line, also our main target, at $300.

We also notice during the sharp downtrend in 2018, that price took a breather in between the 227% and 261% fib lines, telling us that price has some memory here and that it can be very likely that $300 level can be reached.

ETH/USD chart provided by Tradingview

Now taking a look at the bearish scenario, we have to take a look at the daily RSI to see what momentum is telling us. We can see that RSI has already formed a downtrend and is now trading outside of it.

RSI already made a lower high outside of this trend, indicating that momentum is turning back to the direction of the trend. If momentum falls back to below the trend, we could see ETH fall down back below $240 and possibly onto $220

ETH/USD chart provided by Tradingview

Ethereum is currently at the deciding point for a decline or continuation, and whether it will rise or dump is up to the 4-hour momentum. With RSI still hovering above 50 could indicate the bullish scenario is more likely.

Do you think ETH can reach $300 or is momentum overextended and we will see ETH fall down to $240? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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