- Ethereum seesaws near multi-month-old horizontal resistance after hitting 11-week high.
- Overbought RSI, 200-day SMA act as extra challenges for ETH bulls.
- ETH/USD downtrend remains elusive beyond $1,990, bulls eye $3K on $2,700 breakout.
Ethereum (ETH/USD) holds steady around $2,550 after hitting an 11-week high, mildly bid before Monday’s US session. In doing so, the ETH bulls struggle with an overbought Relative Strength Index (RSI) 14 line, a three-month resistance zone, and the 200-day Simple Moving Average (SMA). Despite these hurdles, any ETH/USD pullback remains limited by a strong support line from the past five months, backing overall optimism surrounding the Altcoin leader.
Technical chart: Daily chart portrays the buyer’s struggle
Source:Tradingview
Ethereum stays trapped between $2,525 and $2,565 comprising multiple levels marked in February and March, as it struggles with overbought RSI and resistance at the 200-day SMA of around $2,700.
Even so, bullish signals from the Moving Average Convergence Divergence (MACD) indicator and successful break of 100-day SMA, as well as five-month-old descending resistance line, keep ETH bulls hopeful of crossing the key SMA hurdle and directing the following run-up toward the $3,000 threshold.
Meanwhile, a pullback in ETH/USD could target the 100-day SMA near $2,095 and the previous resistance line around $1,990. If this fails to hold, the yearly lows marked in April around $1,385 could lure the bears.
ETH/USD: Four-hour chart
Source: Trading view
It’s worth noting that the four-hour chart portrays the ETH/USD’s double top around $2,610, making it an additional upside filter for the bulls to watch during a fresh run-up.
That said, the 21-bar SMA of $2,453 restricts immediate downside of the Ethereum before a slew of horizontal supports surrounding $2,105, $2,066 and $1,956. It should be noted that the ETH/USD weakness past $1,956 needs validation from a month-long support line and the 200-bar SMA, respectively near $1,860 and $1,798, become confirming the bear’s return.
In summary, Ethereum’s upside is limited without a break above $2,700, but a pullback seems unlikely due to recent technical breakouts and positive market sentiment.
