Ethereum Price Analysis: Is ETH About To Retrace After 66% 30-day Gains?


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Ethereum Price Analysis: Is ETH About To Retrace After 66% 30-day Gains?

  • Ethereum saw a small 1.51% price rise over the past 24-hours as it reaches $266.
  • Ethereum continued to rise past $250 over the past few days to climb as high as $275 before rolling over

Etherum has started to slow its pace a little as it sees a small 1.51% price increase over the past 24 hours of trading. The cryptocurrency had surged by a total of 66% over the past 30-days and is showing some signs of exhaustion.

Nevertheless, we should always wait for the market to confirm that the bullish run is slowing down and this would require ETH to drop beneath $250 before it can be confirmed. 

Ethereum Price Analysis

ETH/USD – Daily CHART – SHORT TERM

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ETH/USD – DAILY – Source: TradingView

Market Overview

Taking a look at the daily chart above, we can see that Ethereum was unable to break above the resistance at $271 that was outlined in our previous analysis. The cryptocurrency attempted to do so but failed on each attempt. 

It went on to drop into support at $260 before bouncing back higher to the current $266 trading level.

Short term prediction: BULLISH

Ethereum must remain bullish in the short term after such strong growth in 2020. The cryptocurrency would need to fall beneath $250 before we can even start to consider this bullish run as being invalidated. A further drop beneath $220 would certainly prove that the bulls have retreated.

If the sellers do regroup and push lower, the first level of support is expected at $260. Beneath this, additional support lies at $250, $240, and $235. If ETH continues to fall beneath $230, added support is expected at $225, $220, and $215 (short term .5 Fib Retracement).

On the other hand, if the bulls regroup and push above the $271.70 resistance, higher resistance lies at $279. Above this, additional resistance can be found at $290 (1.272 Fib Extension) $298 (long term bearish .5 Fib Retracement), and $310 (1.618 Fib Extension).

The RSI is starting to pull back from extremely overbought conditions as the bulls reach exhaustion. However, it would need to drop beneath 75 before they have truly started to lose some of their previous bullish momentum. A retracement is expected pretty soon as this type of price rise is hard to sustain.

Key Levels

Support: $260, $250, $247, $240, $235, $230, $220, $212, $202, $200, $194

Resistance: $271, $278, $298, $300, $310, $314, $334.

Author: Yaz Sheikh
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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Yaz Sheikh 182 Articles
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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