Technical Analysis of Ethereum

The cryptocurrency market has posted a minor recovery at the beginning of the 2019 year but the negative trend is still strong. In less than five days the price of Ethereum has advanced from $130 above $165 and the current price stands around $160. Lots of analysts agree that Ethereum is currently at a point where it has the potential to make very big gains and the current situation represents a very good entry point for long-term investors. Ethereum is an open source development platform that allows developers to build and deploy decentralized apps (dapps). Ethereum uses Ether (ETH) as its token and it is important to say that ETH is the third-largest cryptocurrency in terms of market cap behind Bitcoin and Ripple. When we look at the 1-year chart we can see that Ethereum is moving in “downtrend”. As long Ethereum is below $400 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $150 and $200 – If the Ethereum jumps above $200 that would be a “BUY” signal and the open way to $250. If the Ethereum jumps above  $400 that could be a strong signal of the trend reversal and the open way to $500. On the other side, if the ETH falls below $150 that will be a signal “SELL” signal and the next target could be around $130.

Advice: In my opinion, there’s a very good reason to pay attention to it rather than Bitcoin: a lot of popular projects are launched using the Ethereum blockchain and this platform has big businesses’ attraction to its blockchain. Ethereum can be a very good investment option according to estimates and some predictions say that this cryptocurrency could be above $2000 in the next two years. As for the technical picture, the ETH remains in bearish phase but if the price advances above $200, short-term traders can enter the position with the stop loss at $180 and take profit at $240 or even $280.
 

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