- Ethereum (ETH) bulls remain firm above $140 USD in the past 72 hours.
- ETH/USD faces an oncoming reversal to key support area at $138 USD as trading volumes remain low.
Ethereum (ETH) currently changes hands at $143.21 USD, as at time of writing, representing a slight drop from intraday highs of $147.50 USD, recorded in the early trading hours of the Asian market. The second largest cryptocurrency has had quite a wonderful start to the year, soaring 17% at its highest since January 1st. The past 24 hours has however seen bulls struggle to stay above the $145 USD resistance area with ETH/USD trading sideways above the psychological $140 USD level with a bullish trajectory on the lower time frames.
The 4-hour charts signals a possible drop in the coming days towards the lower bearish wedge channel support. The price lingers on the middle band of the 20-day Bollinger band, which provides near term support, and a breach below this level signals a possible test of sub-$140 levels.
Trading volumes low, oncoming reversal?
The sharp rise in the cryptocurrency market in 2020 is nothing short of amazing, as the top coins registered double digits gains in the past fortnight. However, lower trading volumes signals a dark period in the coming days for most of these altcoins – ETH leading the pack. ETH/USD bounced off the 4-hour chart resistance twice in the past 24 hours as tension builds up for a major move in price.
The bounce off resistance on the volumes chart shows a greater possibility for a bearish move in the near term. Since spiking to a yearly high trading volume so far on Jan. 1, ETH/USD has faced lower trading volumes signaling some weakness in the up trending market. The price is set to break slightly lower towards $138 USD level in order for bulls to gather strength in the accumulation period to key support levels.
Waiting for the alt season signal?
While Bitcoin (BTC) hovers around $8,100 USD, altcoins are waiting for a signal to start off a potential MASSIVE ALTCOIN run in 2020. As the largest altcoin and largest ICO blockchain, Ethereum is set to be the signal of a start of an atseason. However, the price is still miles away from hitting the key $200 USD resistance level to signal the start of an altseason.
Currently, the price will need to soar by 37% from the current price to breach the said resistance but it will not be easy with long term market charts signaling moderately bullish sentiments that may see price bounce off $158 minor resistance area.