Ethereum above tough resistance: FOMO can push it to $600

25 Jun, 2019 | Updated: 25 Jun, 2019
by Lourens Pepler
Price Analysis
Ethereum above tough resistance: FOMO can push it to $600

It's been 4 days since Ethereum cleared the $300 resistance level and it seems to be holding support above it. Momentum is still growing and is now once again above 70 on RSI. Does #ETH have more in store for us with a possible rise to $388? This is the ETH analysis for 25 June 2019.

Highlights:

- Daily RSI above 70

- Above fib resistance

- $388 target

- $600 possible?

Starting off with a daily chart and looking at the RSI to see what momentum is telling, we can see it is now above the 70 line and is still trending up, after it bounced off 50 RSI support. 

We also notice that the highs and the lows of the RSI is constantly ending higher each time, which tells us that we are in an uptrend. Assuming the trend will continue, means that we will see ETH make another push up, as RSI grows to make a new high. Since RSI is now above 70 tells us that we can expect large buying volume to enter the market, which could lead to a nice FOMO push.

ETH/USD chart provided by Tradingview

For us to see what price levels we can expect for ETH, we need to plot our fib tool on the chart. Measuring the first impulse wave from the high to the low, lays out the possible future expansion for ETH. We can now see that most of the levels has already been reached except for two, the 361% and 423% expansions.

Ethereum is now above the 261% level and is holding support, which could indicate that ETH is ready to move onto the resistance level, the main target of $388. If the FOMO is strong enough, then a push onto the next resistance level at $440 is possible.

ETH/USD chart provided by Tradingview

Looking back to previous RSI action, we are able to spot similar structure to today where RSI trended up for a few months. We can see after a few months of uptrend, that FOMO kicks in, which causes a large increase in price. If ETH can follow the same structure and enter its FOMO phase, could mean that we can see ETH push past our targets and onto a price of $600.

ETH/USD chart provided by Tradingview

Moving over to the hourly chart to look at support levels, we can see that ETH is resting on top of the 261% fib line, which is near the $300 level. This will be our main support level for ETH in case it decides to push sideways or down for a few days.

ETH/USD chart provided by Tradingview

The higher time frames for ETH is looking good and it looks like we are nearing the FOMO phase. Do you think ETH will continue this increase and push onto our targets, and possibly onto $600? 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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