Technical Analysis: Pivotal Weeks Ahead for the Price of Ethereum (ETH)
The next few weeks will likely prove to be pivotal for the price of Ethereum (ETH).
To simplify matters, since Bitcoin (BTC) is currently trending down and could range trade for an extended period of time, we’ll consider the ETH/BTC chart.
A look at the chart shows a potential bottom in the ₿0.016-0.019 region, which may prove to be the last low for a while if Ethereum can move higher from here. Since September, ETH has been outperforming BTC, but recently failed to break above the resistance level of ₿0.022. Currently, the trading pair is looking to form a local low, potentially around the psychological support level of ₿0.020.
If bulls are able to flip this level, there could be more upside ahead and we would be looking at the ₿0.024-0.025 range as the next immediate resistance level.
While the technicals are looking fairly solid, the fundamentals of the Ethereum ecosystem are looking better than ever. The amount of Ethereum and total capital locked in decentralized finance (DeFi) applications continues to hit new highs. Additionally, blockchain gaming and NFT collectibles are beginning to take-off with investors beginning to back major projects. Finally, the impending switch to Proof of Stake (PoS) offers further economic incentives for larger participation in the network, adding another potential catalyst.
With that in mind, investors should keep an eye on Ethereum over the next few weeks and the remainder of 2019, as it will likely prove pivotal for the future price action of the largest altcoin.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.