Ethereum is approaching the psychological level of resistance at $200 after rallying by 10.16% over the past five days.
Breaking out above $200 would indicate a period of continuation to the upside, with $212 emerging as a potential target as it was a level of support in February.
A break out would also mean that Ethereum has completely recovered from the gruelling sell off on March 13, with it surging by 115% since it crashed to as low as $90.
The recent recovery can be attributed to a number of fundamental and technical factors, the first of which being the relative recovery of global stock markets as economic fears surrounding coronavirus begin to subside.
Another reason that specifically focuses on cryptocurrencies is the upcoming Bitcoin halving, which will see rewards for miners slashed from 12.5BTC per block to 6.25BTC per block.
While the halving is thought to have more of an impact on Bitcoin itself, it has historically caused a notable rise in the price of altcoins like Ethereum.
In 2017 Ethereum rallied from under $10 to $1,400 in a momentous bull market that many believe was sparked by the Bitcoin halving in 2016.
However, for the past 18 months it has been consolidating below the $350 level of resistance, printing consecutive lower highs in the process.
In order for Ethereum to take the bull by the horns in a macro sense it needs to break above key levels of resistance at $290, $350 and $487.
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About Ethereum
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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