After a superb first half of the week, Ethereum (ETH) bulls are slowing down. At pixel time 9:00 am UTC+3, the second most valuable coin by market cap, is changing hands at $162 and largely unchanged in the last trading day. However, what’s notable is the rejection of prices at the $160-$165 resistance, former support, level. The zone is important for chartists. A comprehensive break and close above this market could usher in a new wave of buys that may lift ETH to $200.
ETH Stagnates at A Key Resistance Level
ETH, like the rest of the cryptocurrency market benefited from the shifting sentiment and despite the slow down could be ready for new higher highs.
For buyers, this marks a new dawn following last year’s unconvincing price action that saw prices stagnate for long periods of time before tumbling to below $115 in December 2019. At the height of fear, prices snapped back as bulls flew back, restoring equilibrium and calming down the market.
The market is still in that recovery stage. However, for bulls to mark their presence, it is imperative that prices close above $160 at the back of increasing high trading volumes.
Technically, the pump that was initiated on Jan 14 would mean nothing if prices crater from spot levels. While an analysis of price action from the weekly chart suggest strength, there are hints of weakness in the daily chart.
As per the Bollinger Band technical indicator, there is a degree of over-valuation following yesterday’s close above the upper BB. In such instances, and as per the default setting of the candlestick, are rare and happens 5% of the time.
On the flip side, it could also mean that the underlying moment is strong and the over-valuation, the anomaly, could be temporary, as bulls bottom up from last year’s lull as Ethereum developers ready for Phase 0 of Ethereum 2.0.
Ethereum’s Future is Bright
According to Grant Hummer of Chromatic Capital, this is the best time to get involved with Ethereum considering the series of upgrades the platform plans in coming days. Through a blogpost, he said:
“From my vantage point, the future looks bright for Ethereum. There are no other smart contract blockchains with anywhere near the critical mass of researchers, developers, users and projects that Ethereum has, and there’s no better time to get involved. Ethereum is on the cusp of the biggest and most important upgrade it will probably ever undergo, an upgrade that, if successfully implemented, will create massive amounts of value for the world.”