The price of Ethereum is up more than 30% since the beginning of the year but the price could advance even more in the upcoming months according to analysts. The future actually looks bright for Ethereum and for the investors/traders that are not averse to risky speculative investments, putting a reasonable amount of money into Ethereum could potentially turn out to be an excellent investment. 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. In the chart below (a period from April 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 $180, $200, $240 and $300, $140 and $120 represent the current support levels.
The price of Ethereum is still far away from the Ethereum price predictions but according to the rules of technical analysis, the “bearish” trend of this cryptocurrency is still very strong. 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 $240 in the short time period. If the price jumps above $300 we have an open way to $400. If the price drops below $140 strong support that would be a strong “SELL” signal and the open way to $120. In the chart below we can see how did the price of Ethereum performs in the last 30 days. On this chart, I have marked a “trendline” and if the price drops below this trendline that will be a “SELL” signal.
Recommendation: The price of Ethereum has advanced from $122 above $178 in less than four weeks and the current price stands around $166. The price of Ethereum is still far away from the ETH price predictions but if the price jumps again above $200 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $180 and take profit at $220 or $240. If the price drops below $140 strong support that would be a strong “SELL” signal and the open way to $120. If the price weakens to $120 or even $100 that would be an excellent entry price for the long term investors.