Ethereum catch a perfect uptrend....... are you bullish or bearish?
Ethereum catch a perfect uptrend....... are you bullish or bearish?

By Cryptonite | Cryptonite | 6 May 2020


 

Hello again cryptolovers this post is because Ethereum (the second largest crypto on the market and the 1st altcoin as capitalization) has made a lot of signals that we could try to read and hope to use as future inspiration for catch a breakout on upside or even on downside in case you are familiar with the derivates, I would make a fast roundup of what I think are great news for Ethereum.

Lately there was a great increase of institutional investor that jump in and this is a good news because usually this kind of investor stay for the long run, especially if they find value on some kind of new investment as it seems that this is the case.

Another good news is that the early stage of the transition from PoW to PoS could be well accepted from the owners as it seems that more stakers than ETH expected would be willing to give a green light, is not very important that you are pro or cons of the proof of stake project if you think to invest in this cryptocurrency you may be happy about this kind of news.

 

 

ETH chart

 

Let’s start to watch what happened last 3 month with Ethereum valuation, of course the Coronavirus hit hard every asset and cryptocurrency was not an exception, than in February and early march we saw a good support at 212 Dollar that push back every bearish sentiment and validate the sideway valuation that was able to hit 288 Dollars a couple of times.

Unfortunately when a support of this kind is break we may expected a strong reaction on south, Ethereum was hit hard and find a kind of support at 100 Dollars that was broke briefly with a minimum at around 86 Dollar, the good side of this correction is that after finding a support ETH was able to create a uptrend channel (see the chart), this channel is almost perfect…. Look how many times it was touched on the downside and upside, this validate the movement and give us good faith on a positive continuation.

We can’t be 100% sure that this channel would be valid for the long term, than if the valuation breakup the channel on the downside the support are located at 195 and 188 Dollar in a first wave, at 166 and 152 Dollar we may find another valid set of supports, of course no one can know if and when another downtrend would happen than I think is better to be prepared to the eventuality.

In case of a bull run we can see at resistance levels at 212 Dollars that is pretty close to the actual valuation, at 235 and 245 we find another possible battlefield between bulls and bears, if all these levels get reached we may expected a resistance at 276 Dollars…. Quite a far price now but who knows how far Ethereum can go with some good news.

 

Long Term view

 

ETH chart 1 year

 

If we look at the long term chart, in the last year we may notice that around 293/ 295 Dollar Ethereum have serious problems to break the resistance… even if ETH is able to break this difficult level is not sure at all that it can stay for long so high.

The down trend we see in this last chart was a 6 month long movement and breakup in a very violent way pushing the price too fast too high, this probably caused a very steep down trend at the resistance level at around 295 Dollars.



Cryptonite
Cryptonite

crypto enthusiast... just like you ;)

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