Ethereum has seen a 7.35% price increase over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at price of $226.90 after experiencing a further 7.61% price increase over the past 7 trading dyas.
Excitement is brewing for Ethereum as the team announces Ethereum 2.0, known as eWASM. eWASM will be an upgrade to the Ethereum Virtual Machine. The EVM executes smart contracts for decentralised applications built on top of Ethereum.
The eWASM upgrade will allow developers to develop on more coding languages than just Solidity. It will also double the throughput that the network can handle thereby increasing the scalability of Ethereum.
Ethereum currently still holds the number 2 rank in terms of overall market cap across the entire industry. It currently has a total market cap value of $23.17 billion after teh 37 month old coin suffers a 52% price decline over the past 90 trading days. Ethereum is now trading at a price that is -83% lower than the all time high price.
Let us continue to analyse price action for Ethereum over the short term and update our expected support and resistance areas.
ETH/USD – SHORT TERM – DAILY CHART
Analysing the market from the short term time frame, we can see that the recent market appreciation has brought price action for Ethereum into a resistance zone highlighted at the downside 1.414 Fibonacci Extension level (drawn in red) priced at $226.98. We can see that this price area has provided significant resistance for the market during September so price action will need significant momentum to overcome this area.
We can also see that price action has now established a trading range trapped between the 1.414 Fibonacci Extension level priced at $226 as the upper boundary of the trading range and the downside short term 1.272 Fibonacci Extension level priced at $181.88 as the lower boundary of the trading range.
If the bullish action continues throughout the market and pushes price action up above the upper boundary of the trading range priced at $226 then we expect immediate significant resistance higher to be located at the descending trend line. This trend line has been in plat for the majority of the trading year and price action has still yet to breach this level.
If the market can continue above the trend line then further resistance expected higher can then be located at the previous downside 1.618 FIbonacci Extension level (drawn in blue) priced at $271.95. This price area had provided significant support for the market during August 2018 and is therefore expected to provide a similar level of resistance moving forward.
Alternatively, if the bears push the market lower again from this resistance point, we expect immediate support to be located at the psychological round number handle of $200 followed by the bottom of the trading range priced at $181.88.
Further support located below this level can then be expected at the downside 1.414 Fibonacci Extension level priced at $148.47.
The technical indicators within the market are currently learning in the favour of the bulls at this moment in time. The RSI has recently crossed up above the 50 handle indicating that the bulls are now fully in control of the momentum within the market. If the RSI can remain above the 50 handle we expect the market to continue to make gains