Technical Analysis of Ethereum

Ethereum is an open source development platform that allows developers to build and deploy decentralized apps (dapps). 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. In my opinion, this cryptocurrency is currently at a point where it has the potential to make very big gains. If the price falls to $100 that would be an even better entry point for the long-term investors because this price level represents very strong support. 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 $100 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 $100 that will be a signal “SELL” signal and the next target could be around $80.

Advice: 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. Yes, it is true that the price could fall even more but the current price of ETH stands around $128 and this is very close to strong support which stands at $100. As for the technical picture, the ETH remains in bearish phase but if the price advances above $400, short-term traders can enter the position with the stop loss at $390 and take profit at $450 or even $500.