- ETH/USD had a run up to $180 before retracing back to $160 support congestion.
- A growing bearish momentum risks sliding below the lower layer of the Bollinger Band.
It has been an exciting week in the crypto market. We had had significant sentimental and fundamental shifts for most crypto across the board. Ethereum is among the digital assets that extremely leveraged Bitcoin’s surge this week. ETH/USD had a run up to $180 before retracing back to $160 support congestion. The surged place Ethereum is a much-needed uptrend.
Ethereum Price Analysis – ETH/USD Weekly Chart
The weekly chart shows Ethereum battling to break above the upper arm of the Bollinger Band for the first time since January 2018. The indicator has been narrowing following the retracement from the resistance congestion at $180. This shows that ETH/USD is currently poised for consolidation above the support congestion areas above $155.
The next target for Ethereum is at $225, however, the asset’s indecision is probably linked to Bitcoin price hovering above $5,000. There are successive dojo candles that are currently on the 4-hour timeframe coupled with the reducing buy volume are contributing to ETH/USD being stuck below the resistance at $165; a level where it has been rejected several times. However, the weekly chart shows Ethereum trending higher above the trendline support.
Ethereum Price Analysis – ETH/USD 1-hour chart
The 1-hour chart, on the other hand, indicates that the path of least resistance is downward. A growing bearish momentum risks sliding below the lower layer of the Bollinger Band. Traders expect the 50 SMA 1-hour currently at $161.00 to keep declines at bay and instigate a trend reversal. If a reversal fails to happen, the support at $156.00 will come in handy. Ethereum is also strongly supported by other levels at $152.00, $148.00 and $140.00.
Generally, Ethereum is in tandem with Bitcoin price, Therefore, any change that takes place in BTC/USD price will affect the second largest digital assets. Traders in the weekend session are anticipating Bitcoin breakout above $5,200 and retrace the steps towards its weekly high around $5,350. This upside correction is likely to pull ETH/USD above the spot rate at $164.50. The stop loss should be placed right below this level in case events take a turn for the worse.