After Rallying to 5%, What’s Next for Ethereum?January 28, 2020
A number of crypto analysts believe that there will be an interesting week for the second largest crypto asset by market capitalization – Ethereum (ETH). According to them, the market performance of the crypto will be a way better because of the recent resistance and support flip.
It’s good to note that Ethereum successfully bounced oddly the support level of $155, which made the possible next resistance level close to $194.60 stronger. This suggests a positive scenario for the ETH bulls.
The recent consolidation of ETH resulted to testing the mid-Bollinger band. After that, the support level significantly helped the crypto asset from a further price drop. So, many analysts expect that there will be a rebound in the upper Bollinger band.
Is Ethereum Price Really Getting Close to Resistance
A few days ago, both the Bitcoin (BTC) and ETH experienced a strong recovery against the US Dollar. In fact, the price of Ethereum climbed above the key resistance level of $162 while the 100-hour SMA rest at a positive position.
During the aforementioned rise, many folks have witnessed a break above the significant bearish trend line close to the $161 level in the ETH/USD hourly chart. Besides, the bulls successfully break the price above the resistance level of $165.
Furthermore, ETH made it rally to 5% and currently trading close to the resistance level of $170. The crypto’s previous rejection level close to $170 has a possible role for the larger uptrend.
If the bulls can successfully break the price above the resistance of $170, then the price of ETH will surge higher towards the resistance level of $180. above that level, the crypto can possibly start a larger uptrend towards the resistance level of $200. While the intermediate level lies close to $188, the pivot level is $190.
ETH’s Buying Signal
Based on the TD sequential indicator, ETH shows signs of buying signal after the two green candlesticks started trading above the existing green one candle. So, this means that the bullish formation is suggesting that the consolidation is done. So far, Ethereum is expected to further upswing while the risk is positioned at $194 level.
In the case that ETH continues to signal for an uptrend, then the next major target will be $190 resistance level. Under that level, you can find about 3.43 million addresses along with balances between $180 and $205. The aforementioned balances contain 8.56 million Ethereum that can act as a resistance.
On the other hand, if the bullish momentum can break above that level, the next resistance level will be $205 and $253. Just to let you know, more than 4 million addresses are carrying close to 11.7 million Ethereum around that level.
Meanwhile, analysts also expressed that Ethereum has high chance of struggling just to reach the $170 level. In such a case, the price of ETH might drop under the Fib retracement degree of 23.6% transferring from $159 low to $169 high.