Ethereum hasn’t performed so well recently. While most of the other cryptocurrencies used Bitcoin’s momentum, ETH noticed increases, but not so high like others. What went wrong?
What can be better than reading another analysis during the weekend? You can’t do much better than that. Yes, we are that much into cryptocurrencies. Last time, we checked out Bitcoin’s chart. Today, we have Ethereum in the menu. Enjoy!
After May’s boom, ETHUSD has problems with the continuation of the growth momentum. The current situation is probably related to the nervous anticipation of the Bitcoin strategic moves. The upward movement takes place in the narrow channel, which has been going between the limits of the trendline since the middle of May.
The beginning of June directed the quotations below the bottom line, however, not strong enough to talk about the change of trend. We could expect a correction and partial profit taking to calm the investors’ sentiments, as this is one of the target levels of support set at $230.
Any simple solution?
The Ethereum price does not follow Bitcoin prices this year. It does not mean that such a scenario will not be possible. If ETHUSD wants to be proportional to BTCUSD, the exchange rate should get to $750, which is half of the range of historical increases on this cryptocurrency. However, nothing indicates such an optimistic scenario soon.
From the beginning of June, ETHUSD had been moving between $230 and $250. Currently, the exchange rate is at the bottom line of the channel at around $260. The powerful breach of this resistance will let us return to the previously designated uptrend. It opens a way for further strengthening of the exchange rate to the target level of $300, where the upper line of the channel runs, as well as the psychological resistance in the form of a round price. The failure to break this resistance may result in a further sale on the market with the re-testing of the $230 level.
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