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Ethereum [ETH/USD] Technical Analysis: Speculations flash green in hopes of uptrend

Priyamvada Singh

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Ethereum [ETH/USD] Technical Analysis: Speculations flash green in hopes of uptrend
Source: Pixabay

A large number of coins across the cryptocurrency board have begun to play the sideways game once again. Ethereum [ETH] is one of the coins mastering the art.

At the time of writing, ETH token was up by a mere 0.06%, trading at $211.58 with a market cap of $21.8 billion. The total trading volume in the past 24 hours was recorded to be $1.49 billion.

1-hour:

ETHUSD 1-hour candlesticks | Source: tradingview

ETHUSD 1-hour candlesticks | Source: tradingview

In the one-hour time frame, the trendlines stretch from $198.38 to $207.77 [uptrend] and $219.5 to $210.31 [downtrend]. A trend breakout might occur soon as the price concentration has reached a considerable amount.

The Parabolic SAR dots are aligned below the candlesticks. Therefore, the indicator is suggestive of a bullish market.

The MACD is showing a bullish depiction for the ETH market. The reading line has made a bullish crossover by the signal and is currently predictive of a positive price trend.

The Awesome Oscillator is also flashing green at the cryptocurrency, indicative of an uptrend in the Ethereum market.

1-day:

ETHUSD 1-day candlesticks | Source: tradingview

ETHUSD 1-day candlesticks | Source: tradingview

In this scenario, the downtrend extends from $465.49 to $218.97 and the uptrend ranges from $188.01 – $194.21. However, the possibility of a trend breakout is not visible as there is much space for the prices to fluctuate.

The Bollinger bands are running on a narrow path to depict low volatility in the Ethereum market. The price trend is to show the sideways movement according to the indicator.

The RSI has been taking an uphill walk for a while now. The indicator is still moving up to predict a healthy trend for the ETH market.

The Chaikin Money Flow is also moving above the 0-mark. The indicator is currently moving upwards to encourage a bullish trend.



Conclusion

In the technical analysis, all of the above indicators are predicting an uptrend for the market. The Bollinger bands are suspecting low volatility, tuning down the severity of the bullish nature of Ethereum.





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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.

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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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