Will Ethereum Be Successful in Moving Above $300?

Ethereum (ETH) Highlights

• Ethereum is following an ascending support line.
• A golden cross has transpired.
• The price is trading in a range between $245-$285.
• The price has possibly made a double top.

Trader @CryptoNTez tweeted an Ethereum chart with a simple message: if the price is successful in flipping the $275 level as support, it will be successful in increasing above $300.

$ETH / $USD

Crossed over ~275$ on quite straight up movement since mid january w/ increasing volume (levels back to '19 bullrun that lead to $300 mark😏)

Looking here for a potential retest & R/S flip as entry & signal confirmation of a new leg up w/ target at $300+#ETH pic.twitter.com/FrOqdB6cYS

— Nico (@CryptoNTez) February 19, 2020

At the time of writing, the Ethereum price was above this level — sitting comfortably at $280. Will Ethereum (ETH) actually move above $300? Continue reading below if you are interested in finding out.

Ascending Support

The Ethereum price began a rapid increase on January 2. Since then, it has increased by 125 percent over the past 46 days. The price is possibly following an ascending support line but it is currently considerably above it. The 50- and 200-day moving averages (MAs) have made a bullish cross and are solidifying the support offered by the ascending support line. Since the price has not touched this line since January 25, it would be healthy if the price were to do so or create another trading structure instead. Let’s take a look at the short-term movement and see if the price will get there or continue its parabolic increase.

Ethereum’s Trading Range

Since February 12, the Ethereum price has been trading in a range between $245-$285 — with the midpoint of $260 acting intermittently as support and resistance. Also, the price is following a very short-term steep ascending support line. There are two possible scenarios in play:

1. The first is that the price breaks out from this range.
2. The second is that the price breaks down from the ascending support line and heads towards the midpoint line.

Double Top

In order to predict the future movement, we need to take a step back and take a look at a higher time-frame — such as the 12-hour. In there, we can see that the Ethereum price has possibly made a double top at $285. In addition, there are two cases of bearish divergence present:

1. The first (solid line) is generated in the higher highs of February 7 and 14.
2. The second (dashed) at the double top at $285. The bearishness is solidified since the RSI has completed a failed swing top by moving below the low between the divergence highs (upward pointing arrow) and validated it as resistance afterward (downward pointing arrow).

Therefore, we believe that the Ethereum price is likely to break down from the ascending support line and head towards $260 and possibly the range low at $240. To conclude, the Ethereum price has been increasing without experiencing any type of retracement since January 2. However, the price has created a double top, and we believe a decrease towards at least $260 is expected.