- Ethereum price 4% spike on the day freezes at $208 as gains become unstainable above $210.
- The correlation of Ethereum to Bitcoin price action could be the key to another rally following the May halving.
After the impressive price action in the last week of April, when ETH/USD bulls took over the control of both the throttle and the flight controls, sellers have slowly been creeping back. Ethereum price has even plunged to test support at $195 from highs around $227. Fortunately, bullish interest has remained intact in spites of the pressure. ETH/USD is trading above $200 while eyes are glued on higher levels at $250 and $300.
It is clear that sustaining gains above $210 is not a walk in the park. However, Bitcoin (BTC), the largest cryptocurrency by market capitalization is approaching its third halving. A lot has been said in regard the impact of Bitcoin halving. To the state obvious; most crypto experts, investors and enthusiasts believe that like in the past halvings, BTC/USD will rally significantly.
Read more: Cryptocurrency Market Update: Is Bitcoin prepping for a 2017-like parabolic rally?
On the other hand, the correlation of Ethereum price to Bitcoin price action cannot be underestimated. A breakout in Bitcoin price will definitely result in rally in not only for Ethereum but also in the other cryptoassets. Therefore, if Bitcoin starts to grow in value post-having, a $300 prediction for Ether will be a great understatement.
Ethereum price technical picture
At the time of writing, Ethereum has spiked 3.88% to trade at $207 after opening the session on Thursday at $199.18. The effort by the buyers is supported by the RSI’s upward movement. Ongoing bullish momentum appears to have been short-lived especially with the shrinking volatility and a bearish trend bias as shown by the cryptocurrencies live rates. In other words, ETH/USD is unlikely to continue with the bullish action.
On the upside, the 61.8% Fibonacci level taken between the last drop from $291 to a low of $90 is a key resistance that must be overcome for gains towards $220. Other hurdles to keep in mind include the ascending channel resistance and the above mentioned $210 level. On the downside, support areas at $200, $195 and $190 remain intact.