Over the last 24 hours, the price of Bitcoin has not changed much and still stands at slightly above $43,500. But trading volume jumped sharply by 33% and amounted to $24 billion yesterday. At the same time, the altcoin market was on the rise and many cryptocurrencies maintained significant upward momentum. As a result, the Bitcoin market dominance decreased from 43.5% to 42.75%.
The second largest cryptocurrency by capitalization, Ethereum, rose by more than 8% yesterday and consolidated above $3,000. Let’s take a look at the ETH chart and try to understand what to expect from it in the coming days:
Over the past two days, the price of Ethereum has risen by 11.8% from $2,829 to $3,196, which is quite an impressive result. Around $3,200 buyers faced serious resistance. By now, the price has rolled back down by 2%. Yesterday’s daily candle took a pronounced upward direction. It will be quite difficult to block it, so the growth option would be more preferable in the coming days.
The $3,200 level is key for the Ethereum chart as here comes the average line of the global downward channel. In the last 2 months, it has also been a strong resistance level. If the price manages to break it, Ethereum will get great opportunities to increase further.
In addition, over 1.5 months, a new “inverted head and shoulders” reversal pattern with clearly defined boundaries has formed on the chart, signaling the upcoming downtrend. The neckline comes around $3,200. This once again proves the importance of this level.
We also put a 200-day moving average line on the top of the chart. Ethereum broke it on January 5 and since then it has been moving below it. However, over the past 2 weeks, we have seen an upward reversal and the price almost touched it on February 9-10. The moving average is now coming at the $3,314 level, just above the neckline of the aforementioned pattern and the middle line of the global downward channel.
On the daily chart, the upper Bollinger band comes around $3,330. At the end of last week, the ETH price tested the middle band and started to turn up 2 days ago. This reinforces our assumptions of a possible price reversal.
This altogether points to the fact that the $3,200 – $3,350 area is the strongest resistance level for Ethereum. If buyers succeed in overcoming it, there will be a huge room for the price to go up. So, here we expect to see a struggle between bulls and bears in the coming days. The final outcome will determine the direction that Ethereum will take in the next 2-3 months. If bulls win, then another cycle of growth may begin, but overwise the bearish trend will continue.