Ethereum: USD/ETH (ETH=) Set To Break Key Resistance At $150, Can Bulls Retake $200?

Ethereum: USD/ETH (ETH=) Set To Break Key Resistance At $150, Can Bulls Retake $200?

Ethereum: USD/ETH (ETH=) Set To Break Key Resistance At $150, Can Bulls Retake $200?

The start of 2020 has been gracious to Ethereum bulls as the coin experiences gradual growth towards the psychological $150 USD level. Bitcoin’s spike in price over the course of 2019 – over 100% growth – did not inspire an “altseason” with top altcoins such as ETH and XRP ending the year at a loss. However, the former has shown steady growth over the past fortnight, growing over 14% to trade at $144.50 USD as at time of writing.

The gradual rise in ETH has set the price on the verge of breaking the 4-hour chart key resistance at $145.93 USD, a move that will set the bulls on an upward momentum. One cryptocurrency analyst believes the smart contract token will appreciate to $200 if price breaks resistance.

Ethereum on the verge of $150 break out

Looking at the short timeframe charts, the price of ETH/USD is on the cusp of a breakout above the key resistance at $145.93. The relative index has oscillated over 50 in the past few trading sessions with a bullish projection towards the overbought levels. A break above resistance will effectively usher in an upward momentum on ETH/USD towards the upper resistance levels at $160, $180 and possibly $200 USD.

Bulls defying the market’s gravity by setting higher lows and higher highs on the ETH/USD pair has seen the price settle between $141 and $145. Can bulls push price towards $200 USD?

A $200 USD possibility?

Ethereum needs to grow by about 40% from current prices to have any chance of hitting $200 in the near term. As alluded to earlier, crossing over the key resistance at $150 USD will be key to start a push towards higher trading levels. Furthermore, the launch of Ethereum 2.0, the Serenity upgrade is very likely to be launched this year which strengthens the fundamentals of the token.

According to ConsenSys co-founder, Andrew Keys the upgrade of the network towards a Proof of Stake (POS) consensus will kick off before the end of the year. In a published post on ConsenSys network, Keys said,

A launch in 2020 will be a very bullish move as the timeline for the launch of Phase 1 moves up from the expected 2021 launch date. This said, the market prospects of Ethereum looks very steady and a breakout to $200 USD cannot be ruled out.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 154.02.

The projected lower bound is: 132.07.

The projected closing price is: 143.04.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 66.3566. This is not an overbought or oversold reading. The last signal was a sell 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 56.98. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 26 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 91. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 20 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed down -1.220 at 143.070. Volume was 55% below average (consolidating) and Bollinger Bands were 17% narrower than normal.

Open     High      Low     Close     Volume___
143.980 147.250 142.370 143.070 27,172
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 140.28 139.08 185.45
Volatility: 40 52 72
Volume: 84,409 67,944 65,952

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX ETH= is currently 22.9% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of ETH= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on ETH= and have had this outlook for the last 7 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH