Ethereum, together with other major cryptos, has been on a steady decline and has already lost around 90% of its value since the beginning of this year. ETH/USD was trading near the 1595 barrier on the 13th of January. From a short-term perspective, the crypto is trading within a small range between the 80.50 and 96.30 levels since the beginning of December. After recently failing to make a lower low, today Ethereum is pushing higher and is now aiming for a test of the upper side of the above-mentioned range.
Ethereum already managed to gain about 10% in value today, so the possibility of seeing a bit more buying has increased, in our view. But can it make similar gains during the Christmas and New Year period, like it did during the previous winter? The short answer would be “unlikely”, because the whole crypto world has been shaken by bad press and was also too volatile and unreliable. Then again, there is still a chance for some cryptos to pick up the pace and move higher, because at prices like these, some bulls could actually see a bit of value and could jump in again, in order to squeeze at least a little bit of gains from the whole crypto market. Hence why, Ethereum could be an attractive option for investors, at least in the short run.
If Ethereum pushes above 96.30, this could trigger some more buying activity and the price may get lifted towards the next potential area of resistance at 111.50, a break of which may send it higher. The next potential target may be the 125.25 hurdle, marked by the high of the 28th of November. This is where the crypto could meet the 200 EMA (black line), which might temporarily stall the price acceleration, but if eventually, that whole resistance area bows down to the bulls, ETH/USD could travel further north, where it could re-test the 144.50 level. On the 14th and the 15th of November this level acted as good support for the crypto.
On the other hand, if Ethereum suddenly reverses and drops below the 80.50 hurdle, the lower end of the aforementioned range, then we might start considering further extensions to the downside, where the next potential area of support could be around the 70.00 obstacle. A break of that obstacle, might keep the bulls away from entering and the price could fall towards the 55.00 zone, marked by the low of the 8th of may last year.
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