At the time of writing, Ethereum (ETH) is trading at around $150 following a 5% increase in price over the last 24 hours.
The world’s second-largest cryptocurrency by market cap has been consolidating to the upside since the start of the new year and is now back above its 20-day EMA.
As mentioned last week, the uncertainty around ETH’s price action could mean a continuation of bullish momentum.
Let’s take a look at the chart for Ethereum, courtesy of TradingView.
During the second half of 2019, ETH was attempting to consolidate and recover following the huge market downturn in the summer.
The altcoin experienced huge drops in September and November before an early-2020 market spike took ETH from around $123 to over $140. This positive momentum has now continued with another spike to $150.
However, Ethereum is still over 50% down from last year’s high, meaning there’s still a long way to go before the coin recovers completely.
I personally think the positive trend ETH is experiencing at the moment has a strong chance of continuing for the next few weeks.
As a result of this year’s positive momentum, ETH has climbed back up and is now well above its 20-day EMA – a bullish signal. I expect ETH to continue pumping towards the 50-day and 200-day EMAs over the next week.
For now, I would aim at making minor entries while the price is still below the 200-day EMA. Volume-wise, ETH is already hovering above $10 billion – close to five times higher than late 2019.
At the moment, buyers are taking control, which means volatility can be expected to increase.
ETH is also close to its lowest support level intervals (according to the volume profile). Therefore, we should expect price to keep rebounding to the upside.
In addition, since the start of the new year, ETH has also been putting in lower highs – another bullish signal.
Right now, Ethereum is holding above $150. If there’s another swing to the upside, I expect ETH to face new resistance near the 200-day EMA, between $170 and $180.
On an equally positive note, the Istanbul upgrade and Munir Glacier have both been implemented successfully with only a few minor issues arising.
While the first hard fork was quite an important step towards ETH 2.0 as it implemented improved functionality and lower gas fees, the second update adjusted the difficulty bomb to make sure transaction fees remained low.
I personally believe we can expect a testnet release of the new Casper PoS soon, at least by the first quarter of 2020.
Safe trades!
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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