The cryptocurrency market is still under the pressure and it is important to say that the price of Ethereum is very close to the strong support level. Ethereum is an open-source development platform that allows developers to build and deploy decentralized apps (dapps). Ethereum uses Ether (ETH) as its token and it is important to say that a lot of popular projects are launched using the Ethereum blockchain. Ethereum is the third-largest cryptocurrency in terms of market cap behind Bitcoin and Ripple and this platform has big businesses’ attraction to its blockchain. Ethereum can be a very good investment option according to estimates and some predictions say that this cryptocurrency could be above $1 000 in the next several years. As for the technical picture, the Ethereum remains in the bearish phase but if the price advances above $200 it could be a good sign of the trend reversal. In the chart below (a period from May 2019), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $150, $200 and $300, $115 and $100 represent the current support levels.
The price of Ethereum has weakened from $240 to $116 in less than 180 days and the price could fall even more in the upcoming weeks. Although the price can weaken even more the current price represents a good entry-level for the long term investors. It is very hard to predict where the price of Ethereum will go, but if the price jumps again above $200 it would probably reach $250 in the short time period. If the price jumps above $300 we have an open way to $400. If the price drops below $100 strong support that would be a strong “SELL” signal and the open way to $80.
Recommendation: The cryptocurrency market is little changed this Wednesday and it is very important to say that the price of Bitcoin is not able to surpass $7 500 resistance which could be an indication that the price could fall again in the upcoming days. Despite this, Ethereum has a very good risk/reward ratio in the market right now which means you stand to gain a lot more for taking a comparatively smaller risk. If the price weakens to $115 or even $100 that would be an excellent entry price for the long term investors. I would recommend everybody to be careful and to invest a small sum of money in Ethereum, the best time period for me is between 3-5 years, hold and wait. The price of Ethereum is still far away from the ETH price predictions but according to the rules of technical analysis, the “bearish” trend of this cryptocurrency is still very strong. If the price jumps again above $150 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $140 and take profit at $170 or $200. If the price drops below $100 support that would be a “SELL” signal and the open way to $80.