- ETH/USD consolidates for the next push higher.
- Potential inverse head and shoulders on the hourly chart.
- Buyers to aim for $215 on a bullish breakout.
Ethereum (ETH/USD) is consolidating Saturday’s rebound below 203 levels on a quiet Sunday trading. The spot wavers in a $5 range, having bounced-off a brief dip below 200 mark in early trades. The second-most traded cryptocurrency is yearning for a sustained break higher over the last hours, with the downside cushioned by a stack of healthy support levels. The coin hit a daily high of 202.67 before easing slightly to now trade at 201.35, still up 0.50% on the day. The spot enjoys a market capitalization of about $ 22.39 billion, set to settle the week with a 7% weekly gain.
Short-term technical outlook
Looking at the hourly sticks, the no. 2 coin is teasing an inverse head and shoulders breakout. The buyers remain hopeful, as a breakout at the 202.32 neckline could trigger a sharp rally towards the pattern target of 214.86. The immediate resistance awaits at 206.17 (May 14 high) while the next one is seen around 210 (round number/May 10 high). A lack of significant resistances combined with the hourly Relative Strength Index (RSI) holding above the midline suggest the upbeat momentum to be unchallenged.
To the downside, the 21-hourly Simple Moving Average (HMA) should offer some support to the bulls. However, the 199.60/30 region will be tested on a failure to defend the 21-HMA. That demand area is the confluence of the 50 and 100-HMAs. The next support on the sellers’ radar is at the downward sloping 200-HMA of 196.44.
ETH/USD 1–hour chart
