Difficult Path For Ethereum
Difficult Path For Ethereum

By Cryptonite | Cryptonite | 23 May 2020


 

 

Hello everyone, today I want to talk about Ethereum as the second most capitalized cryptocurrency is in a key level for a further move, we will see if this movement will be bullish or bearish, before start the analysis is good to know that the cryptocurrency is plenty of positive news.

We know that a lot of institutional investors start to invest in ETH, the currency itself is transitioning from PoW to PoS with a good number of holders that yet say they are willing to stake it, also the DeFi wave is getting a push to Ethereum quote.

 

Long Term View

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With a bag full of positivity we start to check the price and the movement of this revolutionary currency, in my last post I draw an ascending channel that was extremely positive and to be honest I was pretty sure that was very difficult to breakout…. It ended that I was wrong and in the first chart of this post the steepest trendline that was breakout lately was the lowest range of the channel.

We are focusing on the new trendline now , this new trend seems more solid as it was touched a couple of times in recent weeks, right now the price is facing some dilemma as at around 200 Dollar we can see a jump up or a severe push back, lets see what can happen if price will be able to stay high.

In the case we will appreciate an accumulation phase the key level now is the 211 Dollar as we need to close a session over this target, we may face immediately a resistance at 215 Dollar that would be more a psychological target, the next resistance we find  is set at around 218/220 Dollar and this will be a price that could face some serious fight between bulls and bears.

If bulls take the lead we may expect some new resistance at 228 Dollar, this level is a price we saw just at April 30, it’s also correspond to the last resistance before jump to much higher prices,  I personally see some obstacle at 275 Dollar as next key level, may others focusing them attention also at 255 Dollar but I really think that it will be just a minor obstacle.

Even if we have a positive view we must think at the chance that a sudden downtrend would came with the bears in charge, let’s take a look at the support we may find on our way down, 190/193 Dollar is the first place the valuation could stop, if we breakout this level we breakout also the trendline we see on the chart, this will lead us to the next level pretty fast.

The second support is placed at 180 Dollar, this price is the last bastion for keep the general view at least slightly positive, a fall to lowest levels would face a target at 166 Dollar, a deepest support is at 150/156 Dollar.

 

Short Term View

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Jumping to the short term chart we can see that from a classic uptrend with increasing minimum and maximum we slowdown and there is a sideway trend, is very important return to the classic ascending figure, for this reason we face some obstacle at 211 dollar and, even more important for the short term  morale, we need to close one session over the top of April 30.

Even for the short term chart we confirm a key level at 190 Dollar that is the price that bulls may defend at any cost if we want to see a continuation of the trendline.

 

Thanks for reading and hope you enjoy this post, as always remember that before investing you may do your own research as this activity carry a substantial level of risk



Cryptonite
Cryptonite

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