Jul 30, 2020 13:34 UTC
Aug 1, 2020 at 09:16 UTC
Cryptocurrency Price Analysis: Ethereum
Ethereum, the second largest cryptocurrency experienced a massive spike in the last week with the asset trading above $300 dollars for the first time in 2020. The asset was trading at a $334 high setting up a new benchmark this year, breaking it’s previous major resistance of $280. Statistics show that the asset surged 35% in the past week and has much faster growth and adoption than the leading crypto asset Bitcoin.
The exploding Defi Market in the past month locking a total value of $3.75 billion can be held majorly accountable for boosting the asset. The ether has seen a huge rise in users in the mid-June. This coupled with high demand and increase value has made what the current prices look like.
Nevertheless, the breakout was anticipated by the Average True Range (ATR) which indicates a potential breakout (either up or down) whenever the volatility hits multi-low level.
(check : Investopedia)
Short term Prediction: ETH/USD
Examining from the technical levels, the Relative Strength Index (RSI) a Momentum Measuring Indicator (Check: Source Link) is at a current 81.62%( chart above) suggests us an Overbought Market condition which usually means that the price is already trading above it’s Fair value ($334 In this case). Typically, this is followed by a pullback which was visible by a bearish close ($317.43) the previous day. At the time of writing the asset is currently trading at a bullish $322, However, this doesn’t signify that the uptrend will continue for a short term.
Viewing the preceding RSI Oscillator (chart above) , the last time the asset topped 80% it was followed by a setback which was regained by the bulls after a short period of time.
On the Contrary, the Exponential Moving Average (check: Source Link) highlights a bullish trend in the short-term as EMA shows a wide divergence with the price. It is evident that the buyers hold a strong grip and the situation might remain intact for a short term.
Furthermore, it is clearly visible that the shorter moving average (EMA 26, MA26) is crossing and rising above the longer (EMA 50) which indicate that a bullish uptrend shall remain intact for a short period.
Incorporating the two, it can be said that the asset will continue a bullish trend if the price closes above $319 support level. Otherwise, if the price closes below $319 then the asset will follow a bearish trend for a very short period of time(settling the RSI below 70) which will then be again uplifted heavily by the bulls.
On the contrary, If the market closes at the support below $300. Then it might see a bearish trend.
Key Support level: $319, $300 & $289(highlighted by red)
Key Resistance level: $334, $327(highlighted by blue)
(check: Source Link)
It can be said that the asset will eventually experience a bullish trend and will ought to break the $334 resistance further setting new key resistance support of $360, but not before experiencing a bearish trend in between.
For more short- term references:
Long Term Prediction: ETH/USD
Technically, the long 150 EMA falls below the price line which suggests a strong signal for a Long-term upcoming bullish trend.
Moreover, it is evident after looking at the chart that the volume of the trade forms a strong foundation for an upsurge in the price of the asset.
If the bulls can hold the volume of the trade, it can be said that the prices may rise and crose $400 mark by the end of the year.
Disclaimer : The opinions and price prediction done here are solely the opinion of author. The crypto market is very risky and volatile, so the predictions might not come true. Please keep an open mind and do a risk analysis before going on any price predictions.