Bears Out, Bulls In – ETH up 92%
The bearish swing seen in the prices of most cryptocurrencies during the first quarter this year has now passed with all major crypto-assets including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) now trading in the green, showing a widespread change in market direction. Ethereum (ETH), the second largest cryptocurrency by market capitalization, is now trading at over $730; up 92% from the $380/ETH level that was seen at on April 1st. The ascent follows a decline of 72% from the peak $1400 level that the crypto was at during the second week of January this year. However, since April, we’ve seen no major downswing in its price movement, confirming a reversal in trend – the bulls are out again.
The Moving Average Cross-Over
We looked at certain technical indicators for validation. The chart above depicts the price of Ethereum in USD as quoted on the Bitfinex exchange, since the beginning of the year. The short-term moving average (MA 14 – that is 14 days) crossing over the medium term (MA 50 days and MA 100 days) from below, indicates an uptrend in the price of Ethereum (ETH).
Higher Highs for ETH
From a swing trade perspective, the price of Ethereum is now making higher highs and higher lows, again indicating a bullish trend. Momentum indicators such as the RSI (relative strength index) which help determine the strength of an uptrend or downtrend, being at $57.7 well above the equilibrium (~$50) confirms strength in the up move.
Trend Line Broken, Price Well Above Support
Also, a quick view of the medium-term trend lines, as plotted in the chart above, validates our belief that Ethereum (ETH) is currently on an uptrend. During its downtrend in the first quarter this year, ETH broke its key support level $819, which went onto become the new resistance level, as price reversed trend. Currently, the price (currently at $735 as on May 15, 6:40 UTC) having broken above the medium-term (green diagonal) trend line, and is currently trading between its new-found support (~$678) and resistance (~$819) levels. Once, and if, the price breaks above the $819 resistance level, its subsequent ascent could meet a resistance of ~$976.
For now, the bulls are definitely out and are running full throttle on ETH.
Do keep an eye on our Ethereum page for more insights into key profit-booking price points investors can look out for, as ETH continues its march.