Ethereum Price Analysis: ETH Battling At $200 And Pushes Towards Monthly High Against Bitcoin
- Ethereum saw a 1.5% price increase today as the coin reaches $197.
- The cryptocurrency surged by a total of 7.4% this week as it breaks previous resistance at $187 to reach $198.
- Against Bitcoin, Ethereum is also on the rise as it makes an attempt at the April highs of 0.026 BTC.
Support: $194, $187, $180.
Resistance: $198, $200, $211.
Support: 0.025 BTC, 0.0247 BTC, 0.024 BTC.
Resistance: 0.026 BTC, 0.0263 BTC, 0.027 BTC.
Ethereum finally breached the resistance at $187, provided by a bearish .5 Fib Retracement, this week. It had dropped from this resistance last week which caused it to dip into the 100-days EMA before rebounding higher to break it.
Ethereum is now trading at $198, 1.414 Fib Extension resistance, and is primed to break $200 in the very short term.
Looking ahead, once the buyers penetrate $198, the next level of resistance lies at $200. Above this, resistance is located at $208 (1.618 Fib Extension) and $211 (bearish .618 Fib Retracement. Following this, added resistance lies at $220 and $225.
Toward the downside, support lies at $194, $187, and $180 (200-days EMA). Beneath this, added support is expected at $175 and $169.
The RSI is well above the 50 line to indicate that the buyers dominate the market momentum. It still has room before becoming overbought which suggests that ETH can still push higher before retracing.
Against Bitcoin, Ethereum managed to rebound from the support at 0.025 BTC and push higher into the April high resistance level at around 0.026 BTC.
The resistance here is provided by a bearish .786 Fib Retracement and must be overcome for ETH to continue to push higher toward the 2020 highs at around 0.028 BTC.
Once the buyers break 0.026 BTC, resistance is located at 0.0263 BTC and 0.0266 BTC (bearish .886 Fib Retracement). Above this, resistance lies at 0.027 BTC, 0.0233 BTC (1.414 Fib Extension), and 0.0278 BTC.
On the other side, the first level of strong support lies at 0.025 BTC. Beneath this, support lies at 0.0247 BTC, 0.024 BTC, and 0.023 BTC (.5 Fib Retracement).
The RSI is above 50, however, it is falling which suggests that the bullish momentum is fading. ETH can be expected to break the April highs so long as the RSI rebounds from the 50 level so the sellers do not take control of the market momentum.
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Cryptocurrency charts by TradingView.
Ethereum Price Analysis: ETH/USD bulls stop short of $200.00, the upside momentum remains strong
On the intraday charts, ETH/USD is ripe for the downside correction as 1-hour RSI reversed to the North from the overbought territory. The price returned to the area below the upper line of the 1-hour Bollinger Band and may extend the correction towards $195.00. This local support is created by the middle line of the 1-hour Bollinger Band. If it is broken, the sell-off may continue towards 1-hour SMA50 at $192.60 and $190.00.
On the upside, ETH has a chance to retest $200.00. Once this psychological barrier is out of the way, the recovery is likely to gain traction with the next focus on weekly SMA100 at $21 and SMA200 on approach to psychological $250.00.
Ether futures activity grows ahead of July protocol upgrade
Apr 26, 2020 at 18:31 UTC
Ether prices, April 19 – 26, 2020.
Long positions in Bitfinex ether perpetual futures are also soaring ahead of the Ethereum upgrade. Those contracts began noticeably climbing starting in mid-March, just after the price of ether crashed to a little above $100.
While quarterly futures have contract dates four times per year, perpetual futures trade without expiration dates. This gives traders some of the advantages of the futures markets such as high leverage while mimicking the price behavior of the spot market.
Open interest for ether futures on Bitfinex is at just over $500,000 at the time of publication, while open interest on BitMEX, the largest market for ether perpetual futures, is just below $80 million, according to data aggregator CoinGecko. Bitfinex traders taking more long positions in ether futures could signal speculative bullishness ahead of the ETH 2.0 launch in addition to hedging strategies or an arbitrage trade incentivized by funding rates.
Cryptocurrency over-the-counter desks are also seeing increased investor demand for ether after recent March lows and heading into the scheduled ETH 2.0 launch.
“We had decent ETH buying flow in the last drop on mid March with a few large investors taking a position on the upcoming 2.0 upgrade,” said Ricky Li, co-founder of trading firm Altonomy and former Manager of Research and Product for CME Group. But bitcoin buying flow is still “dwarfing” other cryptocurrencies, says Li.
Traders might be more bullish than other sectors in the Ethereum community, however. After previous delays in launching the ETH 2.0 mainnet, some of the Ethereum community is more “cautiously optimistic” as the July launch date approaches, said Wilson Withiam, Ethereum analyst at Messari.
After mainnet launches, short-term returns for cryptocurrencies are largely negative, according to research from Messari. The price of ether was up less than 1 percent on Sunday at $195 at the time of publication, according to Bitstamp.
Author: Daniel Cawrey