Sun. Aug 7th, 2022

there’s a very good reason to pay attention to it rather than Bitcoin. 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 December 2018), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $200, $225, $250 and $300, $175 and $150 represent the current support levels.

We can also notice that the price of Ethereum has been moving in the downtrend for the last six months and the current recovery could not be considered the end of this trend. 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 $250 it would probably reach $300 in the short time period. If the price jumps above $300 we have an open way to $400. If the price drops below $150 strong support that would be a strong “SELL” signal and the open way to $100.

Recommendation: 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 $150 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 $250 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $235 and take profit at $280 or $300. If the price drops below $150 support that would be a “SELL” signal and the open way to $100.

 

By Dov Herman

Dov is a Blockchain and Forex trading enthusiast, who spends most of his time trading and examining software who are related to cryptocurrencies and forex trading. You can follow on Dov’s reviews and articles here on TrustedBrokerz and across the web.