Ethereum has remained in a more bullish formation despite delivering a double top on the daily chart.
The $286 level remains a key area of resistance for Ethereum following two rejections in the past seven days.
However, despite sliding all the way down to $237, it hasn’t closed a daily candle below the $258 level of support.
This exemplifies the strength and optimism surrounding Ethereum at the moment, which has been bolstered by its outstanding 106% rally since the turn of the year.
It is also trading above all key moving average which demonstrates that momentum from a short-term perspective is certainly on the up.
The daily 50 EMA also crossed the 200 EMA to the upside on February 10 to form a golden cross, which again is another technical aspect that will undoubtedly drive price to the upside in the coming weeks and months.
Much of the price action will also depend on the upcoming direction of Bitcoin ahead of May’s halving event.
The Bitcoin halving will see block rewards for miners slashed from 12.5BTC to 6.25BTC per block – an event that has historically caused the price of cryptocurrencies to surge as supply dries up and demand skyrockets.
If Bitcoin can breakout above the $10,500 level of resistance Ethereum will almost certainly follow with a rally to at least $335.
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Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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