ETH/USD is trading around $740, well within a well-defined trading range when looking at regular lines of support and resistance and also looking at the uptrend channel. The lines are currently converging at a critical spot. If this line holds, there may be a buying opportunity, at least from a technical perspective.
Ethereum suffered from the big pre-Christmas crypto-crash and has recovered gradually. Today, it seems that the recovery somewhat stalled. Is this a consolidation phase before the next move to the upside? Or rather a bearish sign? Other cryptocurrencies are mixed, with the exception of Ripple, which is rising quite fast.
Here is the chart, followed by explanations about the levels:
The digital currency is supported at $727, a significant level that served as resistance around Christmas, worked as a swing low and also defines uptrend support.
This convergence level of $727 is a very strong line. Should it hold up, the price may move up from here.
Further support is at $679, the trough where the uptrend support line began. Even lower, we are back to the lows of $554, a higher low after the crash and $483, which was rock bottom on that dark Friday.
Uptrend resistance is at $777, which was a high point earlier in the day. However, the uptrend resistance line has already moved higher, to around $788 at the time of writing. Horizontal resistance is only at $805: Ethereum/USD had its pre-crash high there. Further resistance is at $851, the previous pre-crash peak, followed by $878 and of course, the currently elusive $1000 level.
The rise of Ethereum comes amid speculation that this cryptocoin, sometimes seen as “second in line” to bitcoin, will be the star of 2018. With all the action we had in 2017, it may be too early to speculate which digital currency will be king, and at what time of the year. Things are moving fast.
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