Ethereum Price Analysis: ETH/USD Using Recent Bottom as Launch Pad for Potential Rocket Moves

  • ETH/USD has gained a big 38% over the past 6 days now.
  • The key thing to note is bulls have more to deal with in this run higher, in comparison to 2017.

ETH/USD is on one serious mission to recovery. The bulls have been surging over the past six days now, minus the small pullback on Wednesday. It does very much appear, that the bottom has been observed across the cryptocurrency market, given the sheer power and momentum behind the current moves.

The Downfall of ETH/USD

ETH/USD weekly chart. The price had been falling for five consecutive weeks.

As a brief recap, the price has been falling throughout the year of 2018. Downside pressure did pick up some serious pace and became very devastating in November. ETH/USD fell for five consecutive weeks, accumulating big chunky losses. This was the longest run to the downside seen since October-November 2016.

The price was seen down around 95% from the peak high in January of this year. Just on the 7th December, the lowest level since May 2017, at $83. ETH/USD bears forced a retest of this on the 15th. This sparked a revival in the market bulls. Leading the price into its current run observed, having gained 38% at the time of writing, since that bounce.

Upside Targets

ETH/USD daily chart. Bulls have surged 38% in the past 6 days of trading.

The next potential barrier of obstruction for the bulls is eyed at around $130, an area the price consolidated for a brief period at the back end of November – early December before then resuming its move lower. Outside of this, another small barrier seen within the $170 area, last traded here mid-November during the midst of the fall.

Other than the above-mentioned, it could be a very fast return for ETH/USD in firmly reclaiming the psychological $200 mark. Between September right up to November, the price was stuck within a very narrow range. This may prove to be the sticky challenge for the bulls, depending on momentum levels.

Furthermore, eyes will then be on $300. The key thing to note is that during the huge bull run of 2017, there was little in the way of historical levels. This helped in providing a clean run to the north, at heights that were reached. However now, during this bearish trend, levels of resistance have been formed, which will be new to the bulls in tackling.

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.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.