At the time of writing, Ethereum (ETH) is trading at around $143 following a 10% increase in price since last week.
Over the past 24 hours, ETH has gained close to 1.5%.
The world’s second-largest cryptocurrency by market cap had been consolidating to the downside for the last two months of 2019 before a massive green candle took price back above its 20-day EMA this week.
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.
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.
The current ETH/USD trend
As a result of this week’s positive momentum, ETH has climbed back up and is now clinging on to its 20-day EMA – a bullish signal. Looking at the current Bitcoin trend, I expect price 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 hovering close to $10 billion – close to five times higher than the previous weeks.
At the moment, buyers are taking control, which means volatility can be expected to increase.
Since ETH is also close to the lowest support level intervals (according to the volume profile), we should expect the price to keep rebounding.
Right now, Ethereum is holding above $140. If there’s another swing to the upside, I expect ETH to face resistance near the 200-day EMA, between $170 and $180.
On an equally positive note, the Istanbul upgrade has been implemented successfully with only a few minor issues. This hard fork was quite an important step towards ETH 2.0 and has implemented improved functionality and lower gas fees.
I personally believe we can expect a testnet release of the new Casper PoS soon, at least by the first quarter of 2020.
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.
More Ethereum news and information
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.