In brief:
- Bitcoin’s push above $9,600 was what was needed for Ethereum to test $225.
- This area around $225 is a significant resistance zone last tested in late April.
- With CME Bitcoin futures expiring today, ETH might experience a retracement into the weekend.
The CME Bitcoin futures for the month of May expire today. With respect to the price of BTC, it has defied all odds and managed to test $9,600. This is after the team at Goldman Sachs publicly advised against investing in crypto and Bitcoin.
What usually happens during the week of CME Bitcoin futures expiration, is that the price of BTC experiences a dip with a recovery a few hours or days after the contracts expire. However, for this month, Bitcoin has broken the usual pattern thus providing the perfect environment for Ethereum (ETH) to thrive in the crypto markets.
Ethereum Faces Stiff Resistance Aiming for $228
In the last 48 hours, the bullishness in the crypto markets has propelled Ethereum to momentarily test $225. This ETH price is around the earlier identified resistance level of $228. This price level has been an area of interest for ETH traders for it is the last major hurdle before Ethereum pushes higher to levels around $250.
Further checking the daily ETH/USDT chart courtesy of Tradingview.com, we observe the following.
- The Golden Cross on the daily chart is still valid as ETH trades at $220.
- $228 is an area of stiff resistance.
- From the volume profile, once $228 is broken, the next area of significant resistance is $250.
- Trade volume is reducing further indicating a possible cool down for ETH/USDT into the weekend.
- However, MACD has crossed in a bullish manner above the baseline possibly providing the fuel for one last push up or sideways movement into the weekend.
- MFI is at 64 indicating possible sideways or a last push up after CME Bitcoin futures expire.
Conclusion
In conclusion, Ethereum is facing stiff resistance as it attempts to break the $228 resistance area. A brief technical analysis has identified some bullishness through the Golden Cross and the MACD crossing in a bullish manner above the baseline. However, as the CME Bitcoin futures expire in the next few hours, it might be wise to keep an eye out on the price action of Bitcoin before deciding to long ETH in the crypto markets. Ethereum might experience a possible retracement into the weekend. Stop losses are also advised to protect trading capital.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.