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Ethereum [ETH/USD] Price Analysis: Bull run results in a 13% surge over the past seven days

Priya

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Ethereum [ETH/USD] Price Analysis: Bull run results in a 13% surge over the past seven days
Source: Unsplash

The market opened this morning with most cryptocurrencies in green, with Ethereum [ETH], the second largest cryptocurrency by market cap recording the highest rise. According to CoinMarketCap, at press time, Ethereum was trading at $138.03 with a market cap of $14.48 billion. The coin had a trading volume of $5.07 billion and recorded a surge of over 10% in the past 24 hours as well as a surge of 13% in the past seven days.

1-hour

Ethereum one-hour price chart | Source: Trading View

Ethereum one-hour price chart | Source: TradingView

In the one-hour chart, the cryptocurrency recorded uptrends from $103.27 to $121.56 and $123.93 to $136.74. The immediate resistance for the coin is at $136.78 and there is also a strong resistance at $150.79. The cryptocurrency’s support levels can be found at $115.67 and $103.08.

The Klinger Oscillator shows a bearish crossover as the reading line has decided to place itself below the signal line.

Chaikin Money Flow on the other hand, indicates improved money circulation, forecasting a bullish market for the coin as the line is well above the zero mark.

Bollinger Bands are currently expanding, indicating a more volatile market for the coin.

1-day

Ethereum one-day price chart | Source: Trading View

Ethereum one-day price chart | Source: TradingView

The one-day chart demonstrates a downtrend from $317.55 to $132.34 whereas, the uptrend is outlined from $83.74 to $103.36 and from $103.22 to $121.55. The immediate resistance for the cryptocurrency is set at $156.11 and strong resistance can be found at $128.77. The first support for the coin is pictured at $103.13, while another strong support is at $82.84.

MACD shows that the moving average line took a turn pointing north after a crossover with the signal line, indicating a bullish market for the coin. Additionally, MACD’s histogram is also coloured in green.

Parabolic SAR is also on the same terms as the indicator’s markers are pictured below the candlesticks.

RSI is currently showing evened out buying and selling pressures for the coin in the market. However, the indicator is dangerously close to the overbought zone.



Conclusion

The market is showing a bullish reign for the coin as a majority of the indicators are seen supporting the coin’s bright future. This includes MACD and Parabolic SAR from the one-day chart and Chaikin Money Flow from the one-hour chart.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021

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Bitcoin Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
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With a year left for the highly anticipated Bitcoin [BTC] halving, many expect the price of the top-cryptocurrency to surge prior to May 2020. Analysts have previously opined that three months to one year before the halving does the price of the cryptocurrency move up.

A new piece of research from the cryptocurrency analytics firm, CoinMetrics, suggested that in addition to the precursor pump, Bitcoin [BTC] will reach its “local peak” 18 months after the halving.

 

CoinMetrics charts the price of the top coin, divided based on the 2012 and 2016 halving, showing a noticeable trend. A little more than a year after the first halving when the 210,001 block was mined, the price of Bitcoin surged above $1,000 for the first time, in December 2013 to be precise.

Next, During the July 2016 halving, the coin was trading at just above $600 and within the suggested period of 18 months, the top virtual currency saw its second peak. On 17 December, the coin reached a never-before-seen high of over $19,700 as the Chicago Futures exchanges embraced the digital assets market.

With the price of Bitcoin over $5,000 for the first time in over four months, and the precursor halving bulls on the horizon, the price could surge. Furthermore, based on CoinMetrics’ inference, Bitcoin will see its third peak, higher than $20,000, by the close of 2021, eighteen months after the May 2020 halving.

The halving protocol was placed in the original whitepaper to thwart inflationary pressure that would arise with more blocks mined and more Bitcoins supplied. Historical charts prove that this objective has been adhered to, with a constant drop in the inflation rate with the two previous halvings.

In 2012, the inflation was over 25 percent and immediately after the miner reward reduction to 25 BTC per block, it dropped to under 15 percent. A bracket between 7 percent and just under 20 percent sustained until the second halving in July 2016.

The second halving saw a decline in inflation rate to under 5 percent for the first time in the coin’s history, which has been maintained till today. CoinMetrics pegs the inflation, at press time, to be 3.8 percent. Furthermore, if the historic trend continues, the inflation rate would drop by more than 50 percent to 1.8 percent in May 2020.



Based on the current market and using a historical outlook, analysts suggested that 2019 will be the year of building the industry while the price effect will manifest next year, with the halving being at the very core. Many believe that institutional interest on the rise and the growing crypto-adoption surge could result in a bullish 2020.

Charlie Lee, BTCC’s co-founder suggested in December 2018 that Bitcoin’s next rally will begin in “late 2020”, months after the halving and would peak in December 2021 at 333,000. However, the precursor to this rise would be a January 2019 bottom of $2,500 which did not materialize.





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