In brief:
- Ethereum turning 5 years old has had a bullish effect on the price of ETH.
- Ethereum has bulldozed past several resistance levels including $320.
- At its current momentum, ETH could retest the 2019 high of $365.
- Breaking this level could open the gateway to prices last seen in the 2017/2018 crypto market season.
Yesterday, the popular smart contract platform of Ethereum turned five years old. At the time, ETH was trading comfortably at levels around $330. However, Ethereum has since added another $17 to its value and experiencing a 2020 high of $347.
The bullishness of Ethereum (ETH) in the crypto markets has been attributed to the DeFi boom as well as investors anticipating the release of ETH2.0 by the end of this year. Additionally, Bitcoin is in clear bullish territory as the King of Crypto sets its eyes on $12,000 in the days to come.
Ethereum Could Retest the 2019 High of $365
As earlier mentioned Ethereum has just printed a 2020 high of $347 after bulldozing past its February 2020 high of $320. The latter level was also a strong resistance zone. By breaking this level, Ethereum is primed to experience more gains in the crypto markets as shall be elaborated using the daily ETH/USDT chart courtesy of Tradingview.
From the above ETH/USDT chart, the following can be observed.
- Ethereum’s trade volume is clearly in the green.
- The daily MACD is overextended with its histograms also pointing towards buying of Ethereum by traders.
- The three Moving averages of the 50-day, 100-day and 200-day, all point to a bullish market environment for Ethereum.
- Ethereum’s daily MFI is clearly overextended at a value of 98 hinting of a possible cool down for ETH.
- Additionally, the earlier identified resistance level of $320 has now flipped into a support zone.
- Beyond $320, Ethereum’s next region of considerable resistance is at $365 which is its 2019 peak value.
- Beyond $365, Ethereum’s next area of considerable resistance is the $400 area.
Conclusion
Summing it up, Ethereum is clearly in bullish territory after bulldozing past the $250, $290 and $320 resistance levels. At its current value of $342, Ethereum is primed to retest the 2019 high of $365 in the days to come.
Furthermore, with a bullish Bitcoin, Ethereum could continue moving on up as its fate is closely tied to that of BTC. However, in the short term, Ethereum could experience a pullback back to $320levels as indicated by its high daily MFI value of 98.
As with all analyses of Ethereum, investors and traders are advised to use stop losses and low leverage when trading ETH.