Market Overview

Ethereum Price Analysis: ETH/USD Pulling Up From The $363 Overstretch Low, Buyers Eyeing $420

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  • The cryptocurrency market is fairly quiet while price movements are solely due to sentiments and speculation.
  • A break above the resistance at $420 will pave the way for more gains toward $430.

Ethereum price traded below $400 in the session yesterday before embarking on an upside movement that saw it break above the resistance level at $410. Consequently, ETH/USD is up over 5 percent in the last 24 hours on Wednesday as the buyers gear up for acceleration.

The cryptocurrency market is fairly quiet while price movements are solely due to sentiments and speculation. Ethereum co-founder Vitalik Buterin recently took a stand against a hard fork proposed to change the blockchain limiting the performance of mining hardware developed to take a big chunk of the network’s reward. The Antiminer E3 from Bitmain managed to create a spur in the community with some supporting the hard fork to help disable the hardware. Buterin commented in meeting with the developer, Piper Merriam, "Getting everybody to upgrade is likely to be fairly chaotic and detract from more important things. So, at this point, I personally lean quite significantly toward no action."

Technically, there was a break above the 23.6 percent Fib retracement level with the last swing high of $429 and a low of $363. The price is trading above the 100 SMA and the longer term 200 SMA both of which are bending upward to indicate that ETC/USD will consolidate higher. Similarly, $400 (50 percent Fib retracement level) has formed a highlighted support that will stop further declines toward this level. On the upside, the buyers are eyeing $420, although the gains have been capped below $419. A break above the resistance at $420 will pave the way for more gains toward $430.

ETH/USD hourly chart

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Posted-In: FXStreetCryptocurrency News Forex Markets

 

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