Ethereum Price Analysis: ETH/USD Approaches Key Technical Breach; Next Potential Stop $200
- ETH/USD is making strong technical progress but must push for a firm daily close above $130.
- Next upside target range for the bulls would likely be $200-$230.
ETH/USD has been pushing higher with quite some pace over the past nine days. Seven of those closed in the green, with just two minor days of cooling. Over the period, it has gained a chunky 65%, rising from the lows of $83 after that downside pressure throughout November into December. The price had dropped to its lowest level since early May 2017, before managing to see buyer’s attraction again.
The Downfall of ETH/USD
ETH/USD had been falling for the past five consecutive weeks. This was the longest weekly run of losses that had been seen since October 2016. That confirmed just how strong this downside trend was when it had resumed early November. Market participants were continuing to speculate on a bottom out of hope. The most recent bounce however being observed nowbis demonstrating a few reassuring behavior points that the bottom has been seen.
Vital Near-term Barrier Breached
The bulls have taken out resistance at the time of writing, that was seen heading into the $130 price level. This is significant near-term, as it proved to be punishing when some had thought the bottom had been reached. Between the 24th November up to 5th December, the bottom area was seen at around $102-$100. The price consolidated within this territory, with the ETH/USD bulls consistently penetrating the $130 area before being rejected each time. As a result of the detailed above, ETH/USD bled further, forced to new lows down at $83.
Keeping the above in mind, the bulls will need some further extension away from this $130 area to invite further buying pressure. ETH/USD daily closure above the highlighted supply zone is crucial for this to continue moving north. Otherwise, the risk does very much stack up against the bulls if they do not maintain the current momentum. A possible double-top formation may come into play, which would mean the price falling back down to $83, the neckline.
Should there be a daily candle closure above the detailed area, then another chunky wave of buying pressure may be observed. There isn’t too much in the way of resistance for a reclaim of the psychological $200 mark. ETH/USD has not traded here since the 14th November, during the midst for the most recent market fall. The bulls would then need to breakdown $200-$230 price region, as ETH/USD had range traded here from September, all the way up to November.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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