Ethereum incurred a heavy technical rejection last week, after the cryptocurrency failed to move back inside an important rising price channel.
Ethereum price analysis shows that the cryptocurrency must overcome the $250 resistance level to encourage technical buying.
ETH/USD medium-term price trend
The ETH/USD pair has been trading between the $230 and $240 levels over recent days, following last week’s bearish reversal from just below the $250 level.
Ethereum has been suffering from a lack of a clear price trend, due to Bitcoin being contained within an extremely narrow price range since the halving event.
Ethereum technical analysis shows that a breakout above $250 could prompt a powerful rally towards the $300 level, and possibly higher.
The daily time frame shows that a bullish reversal pattern with substantial upside potential will form if the ETH/USD pair reaches the $300 level.
According to the size of the potential bullish pattern, the ETH/USD pair could rally towards the $480 level if the pattern is activated.
Coronavirus affects markets
ETH/USD short-term price trend
Ethereum technical analysis shows that the cryptocurrency only has a short-term bullish bias while the price trades above the $240 level.
The four-hour time frame currently shows that the ETH/USD pair suffered a heavy technical rejection from a rising price channel last week.
According to short-term analysis, the ETH/USD pair needs to move above the $250 level to break back inside the channel.
If the ETH/USD pair recovers back inside the channel, then technical buying interest is likely to increase.
Bulls could attempt to rally the ETH/USD pair towards the top of the channel, around the $300 level.
ETH/USD technical summary
Ethereum technical analysis shows that the ETH/USD pair could stage a powerful bullish breakout towards the $300 level if the $250 resistance level is broken.