Ethereum Price Analysis: ETH/USD Bull Run Temporarily Halted
- The ETH/USD bull run has been forced to retreat from its explosive run to the north.
- There is a vital near-term supporting trend line preventing a chunky reversal for now.
ETH/USD on Tuesday was forced to give back some of its big start to the week gains late on Monday, after producing initially a double-digit advance. The price had rallied to its highest level since 19th November, above $165. A broad market slow down was seen, which isn’t too surprising, given the excessively strong pump observed last week. This could be a slight market correction, making room for another wave of buying pressure.
Last Week’s Pump
The price had gained a whopping 60%, jumping from lows of $83, up to a high print around the $140 mark. Prior to the most recent bounce, ETH/USD was trading at its lowest levels seen since May 2017. The bulls failed to maintain comfortable momentum once the price entered $140 price territory. It is a known area of resistance and if fully conquered, the only major barrier ahead of the big round $200 mark.
Vital Trend Line Must Hold
During the run higher, ETH/USD has been supported by an ascending trend line, as can be seen via the 4-hour chart view. The trend line providing comfort for the bulls since the 17th December, when the upside momentum picked up pace. This is a crucial part of the move north, a failure of it holding could be very punishing to say the least. At the time of writing, the support can be eyed around $129-130 area. A breach could force ETH/USD to a full reversal of this most recent bull run.
Should the bears manage to force a breakout to the downside, then the flood gates will reopen for selling. Firstly, the psychological $100 level will be sought at for support, as previously proven to. Further south, as an extreme case, eyes will be on a potential retest of the $83 area, where the bull run began last week. There is little in the way of support until these depressed levels. Given how hard and explosive the price rallied, it can fall just as fast.
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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