The recent Bitcoin boom is helping the majority of cryptocurrencies climb out of their respective price slumps. Ethereum has also been majorly affected by the Bitcoin price increase, and has now managed to break above the strong $185 resistance level and climb to where it is currently trading around $195.50. Ethereum is now approaching the $200 level, and this may become the last moment for investors to purchase cheap ETH underneath $200.
Ethereum has now seen a strong 16% price increase over the past 7 trading days, on top of a further 65% price increase over the previous 90 trading days. The cryptocurrency remains ranked in the 2nd position amongst the top cryptocurrency projects, as it presently holds a $20.77 billion market cap valuation.
However, Ethereum is really struggling against Bitcoin. The ETH/BTC market has been dropping at an alarming rate over the past few months, and has dropped by a total of 37% in 2019 alone. The only reason why Ethereum is presently increasing in value is due to Bitcoin increasing at a rapid speed. If we would like to see ETH/USD break above $200 and stay above, we would need to see ETH/BTC reverse and start to climb higher.
Let us take a look at the ETH/USD market and highlight some resistance levels on the way toward and above the $200 level.
Ethereum Price Analysis
ETH/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Largely helped by the Bitcoin price increase, we can see that ETH/USD has recently managed to break back above the strong resistance at the $185 level, which is provided by a medium-termed 1.272 Fibonacci Extension level (drawn in yellow). The cryptocurrency even managed to create some spike highs above $200 for a few moments over the past 2 days. However, price action has been unable to close above the $200 level thus far.
The recent price increase today has also allowed ETH/USD to break above the resistance at the long-term bearish .786 Fibonacci Retracement level (drawn in blue), priced at $194.60. This bearish Fibonacci Retracement level is measured from the November 2018 high to the December 2018 low.
What Is the Current Short-Term Trend?
The current short-term trend for ETH/USD remains bullish. For this bullish trend to become invalidated, we would need to see the market fall and drop beneath the support at the $150 level.
Where Is the Resistance Above $200?
If the bullish pressure continues further higher and price action breaks above the $200 level, we can expect immediate resistance above to be located at the .886 Fibonacci Retracement level (drawn in blue), priced at $208. Above this, higher resistance can then be expected at $212, $221, and $225. The $225 resistance level is also the November 2018 high, and therefore is expected to provide strong resistance moving forward.
What If the Sellers Resume Control?
Alternatively, if the sellers regroup and begin to push the market for ETH/USD lower, we can expect immediate support beneath the market to be located at the $194.60 and $185 levels. The $185 level provided significant resistance for the ETH/USD market during April 2019, and is therefore expected to offer an equal level of significant support moving forward.
Beneath $185, more support can then be found at the $170 and $165 levels. If the selling continues even further beneath, strong support is then expected at the $160 level, which contains the 100-day moving average level.
What Are the Technical Indicators Showing?
The RSI is above the 50 line, which is a good sign for the bulls as it signals that the buyers are in control of the market momentum.
If BTC/USD continues to travel further higher, we can expect ETH/USD to follow suit and break above the $200 level. If this is the case, so long as BTC/USD doesn’t fall too much, we can assume that this will be one of the last moments to be able to purchase Ethereum underneath the $200 level.
This will ring true especially if ETH/BTC can show some strength and start to reverse and travel higher. If Ethereum can increase against Bitcoin, the price for the coin will skyrocket even further higher.