Hello everyone, today I would talk about Ethereum, the second most capitalized cryptocurrency had a lot of positive news that could help the king of smart contract to start a bullish movement that can pulling all the market in green territory.
Let’s see the most important news that could help a new positive trend for Ethereum, the “whale address” was growing on June of about 5% (those address hold from100K till 1 million ETH) this may be a good sign as we saw an increasing of the withdraw from exchanges to the private wallets too, this may indicate that people may willing to hold then asset for a long term.
There is also a growing number of address that own at least 0.1 ETH since the start of the year, this number is up of around +10.9% to 3 million.
There is a positive expectations for the passage from PoW to PoS, the attractiveness of a staking reward catch both the retail client and the institutional investor, this can help Ethereum to find the strength to start a new uptrend.
A technical sign of a bullish movement is also the fact that on Bitmex there are bullish position for around 420 million and bearish position for just 40 million, even if this numbers of Bitmex sometime are tricky we can imagine that the general view is positive.
1 YEAR CHART
Let’s start with some chart analysis, from my latest post we can see that the uptrend started from the lows of mid may is no longer valid as the movement of this last days start to go sideway, we may consider that the trendline was very steep and at every new high was very difficult to maintain this trendline valid, anyway the movement we see now could be good to regain some strength and restart a new bullish trend.
A positive aspect of our past analysis was the finding of a very reliable support in the area 218/220 Dollar (the purple area in the chart), this price seems to be a stronghold where bulls can defeat the bearish pressure, between this support and the actual price we may notice that also 230 Dollar is a light support that we can rely on.
In case bearish pressure will be able to push Ethereum down and break this two support we find some other level at 198/200 Dollar and at 180 Dollar, those price was touched long time ago than we don’t know how valid they are right now, anyway in my opinion it will be difficult that we see again those levels soon.
In the upside our resistance are at 250 Dollar that is both a technical and a psychological level, this price was a big barrier for Ethereum during the last weeks, we can notice from the chart that also at the start of march ETH tried to break that level but without luck.
In case of a new uptrend we can see as resistance the 275 and 285 Dollar that’s where we find the 2020 maximum, this price is reachable if the momentum help the bulls after break the 250 Dollar, is clear that if the newsflow keeping this positive tone the sentiment can help the formation of a new uptrend and the target is the 2020 high exactly at 285 Dollar.
Never say never, lets look at the next resistance that are at 318 Dollar in a first ascending wave and at 340 Dollar if we pass the first price.
Last consideration, if we point the Fibonacci retracement at the February highs we will see that now we pass the 61.8% retracement and at 244 there is the next level (the 78.6% retracement), at this point the fight between bulls and bears will be strong but can drive to a high volatility.
The last price tag are really high but if we look at the chart they are the 1 year maximum, we really don’t know how big will be the news for Ethereum and till where they are able to push the next target price but this could be a reachable price if the hype to this event will stay high.
That’s all for now, thanks for reading and hope you enjoy this post, always remember to do your own research before investing.
The DeFi mania and the move toward POS help this asset to increase in value.