At the time of writing, Ethereum (ETH) is trading at around $167 following a whopping 11% increase in price since last week.
Over the past 24 hours, ETH has gained about 1%.
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 and 50-day EMAs.
As mentioned last week, the uncertainty around ETH’s price action could mean a continuation of the current bullish momentum.
In addition, ETH is getting close to the key resistance levels I discussed last week: between $170 and $180, right where the 200-day EMA is sitting.
Let’s take a look at the chart for Ethereum, courtesy of TradingView.
During the second half of 2019, ETH consolidated from a high of $320 to a low of $119, representing a price depreciation of 63%.
The altcoin experienced significant drops during the summer, and then again during September and November.
However, in a welcome turn of events, ETH has been putting in higher lows since the start of 2020, with price growing from $119 to around $167, where it now sits. In sum, Ethereum has spiked over 40% since the turn of the year.
I personally think the positive trend ETH is experiencing at the moment has a strong chance of continuing for the next few weeks.
Let me take a deeper dive into the current Ethereum price trend.
The current ETH/USD trend
As a result of this year’s positive momentum, ETH has climbed back up and is now well above its 20-day and 50-day EMAs – a clear bullish signal. I expect ETH to continue testing the 200-day EMA over the next week or so.
For now, I would aim at making minor entries while the price is still below the 200-day EMA. Volume-wise, ETH continues to hover above $10 billion, close to five times higher than in late 2019.
At the moment, buyers are taking control, meaning 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.
Right now, Ethereum is holding quite close to its 200-day EMA, around $173. If there’s another swing to the upside, I expect ETH to face resistance around this level.
Looking at the chart, we can clearly see a resistance line around the 200-day EMA. ETH already tried to break it once and failed. Let’s hope it manages to surpass this key level on the next attempt.
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 remain low.
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.
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