Ethereum remains in a bullish position despite being predictably rejected from the $220 level of resistance on Sunday.
As long as the world’s second largest cryptocurrency continues to trade above $200 in the short term it presents more of a chance of upside price action, although a break below would signal a new bearish phase in the market.
As expected much of the attention across the cryptocurrency industry is focused on the Bitcoin halving this week and what its impact will be.
Historically, as previously noted by Coin Rivet, the Bitcoin halving has been a catalyst for a series of staggering bull markets, causing rallies not only in the price of Bitcoin but also altcoins like Ethereum.
But it’s worth pointing out that the bull markets did not happen overnight, with it taking almost a year after the 2016 halving before Bitcoin began its charge to $20,000.
This is why on lower-time frames there may be a 10% correction over the next week or so, although if Bitcoin can break above $9,600 it would confirm a bullish breakout.
In Ethereum’s case the initial target remains at $220 with the next level coming in at $248, which was the high of March 7’s rally before the devastating drop a few days later.
On higher time frames Ethereum desperately needs to create a higher low in order to snap the bearish trend it has been in since 2017.
This would be achieved by a daily or weekly candle close above $300, which is a level that Ethereum has not traded at for the past 11 months.
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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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