Technical Analysis of Ethereum

Ethereum is one of the best performers on the cryptocurrency market in the last two days, in less than 48 hours the price of Ethereum has advanced from $164 above $198 and the current price stands around $197. The beginning of May has been very positive for the cryptocurrency market so far, the price of Bitcoin is above $6 900 and this is certainly a positive thing for all other cryptos. It is also important to mention that there is a correlation between the price movements of Bitcoin and other cryptocurrencies. Ethereum is an open source development platform that allows developers to build and deploy decentralized apps (dapps). This cryptocurrency has the largest developer community and that Ethereum’s proof of concept is popular among institutional investors. 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. 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: If the price advances above $200, short-term traders can enter the position with the stop loss at $190 and take profit at $250 or even $300. The beginning of May has been very positive for the cryptocurrency market and the price of Ethereum currently stands around $197. 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.