Ethereum (ETH) has made a move to the upside, breaking above its $700 psychological mark. The move was initiated by Bitcoin’s push up
The second-largest cryptocurrency by market cap pushed up and broke the $700 mark yesterday — a level last seen in May 2018.
Ethereum’s overall outlook is quite bullish, both from the technical and fundamental perspective. When taking a look at the week-over-week performance, ETH has posted gains of 15.98%, while BTC lost 11.24%. On the other hand, XRP lost 32.90% in the same period.
At the time of writing, ETH is trading for $710, which represents a 28.22% gain when compared to last month’s value.
Ethereum has consistently made moves to the upside, followed by short-term sideways consolidations, followed by more upside. This trend has been in play ever since early-mid November, and it looks like it is set to continue. Ethereum recently hit a wall at $750, but has quickly established a strong support level above $700.
Ethereum has very clear support and resistance levels, which have been respected by recent price movements, almost without exception. The cryptocurrency was also highly correlated with Bitcoin in terms of market direction, but not necessarily the intensity of the move itself. If it breaks the $750 mark, Ethereum’s upside will get contested by the $785 and $825 levels, while its downside is protected by many support levels.
ETH/USD daily price chart. Source: TradingView
The technical overview shows that Ethereum’s daily RSI indicator is hovering around the overbought territory, while its volume stays on relatively high levels.
ETH/USD 1-hour chart. Source: TradingView
As can be seen on the hourly time-frame, we can clearly see Ethereum’s move to the upside and the way it respects the 21-period moving average, which plays a major role in small time frame trading. Ethereum seems to break the 21-period moving average to the downside each time it consolidates, but finds support in the 50-period moving average on the same time-frame. This makes trading Ether’s consolidations very safe as the risk and reward levels are pre-defined.