Ethereum has had undergone various gains and losses over its run in the digital currency markets. The past couple of years have seen it make a steady progression in the market. While its performance against the dollar shifts regularly, it has managed to acquire some commendable stability in recent times. This year, ETH has made both significant gains and losses. On the overall, however, the trend has been great. In order to fully understand the growth and transformation of this platform, we need to perform a proper technical analysis. By looking at the price movements of various currencies using real market data, it is possible to determine the future trend of particular currencies that are of interest. ETH is a crypto that has the ability to bounce back quickly as reported by Admiral Markets many times.
The following is a breakdown of Ethereum’s performance against the dollar and other currencies in the market.
Ethereum saw a huge decline in the second week of May when put against the dollar. The decline was due to the bullish nature of the market where a lot of sellers had put immense pressure on the market. The decline did not persist however as it held at $635 for a while against the dollar. In fact, the price stabilized just as it hit $637 and this marked the start of an uptrend.
The uptrend started right after the pressure in the market eased. First, the $660 resistance level was broken and this marked the beginning of greater interest among buyers. Within a short time, the $660 barrier was also broken and more resistance levels came down. Ethereum performed relatively well over the next couple of hours and days with trade levels easily holding in the $700 mark and above. The $635 mark thus became the lowest point that Ethereum reached within the few days it was observed.
The uptrend did not end and the price at one point was at $740. This was, however, the highest point as the price started adjusting downwards from that point. The trends and recovery made by Ethereum over the time are nevertheless a strong indicator of how the price can bounce back easily from low points. The charts for Ethereum show that a lot of support levels exist in the $700 mark region. This could be an indicator of prices that can be expected in a few hours or days.
The bullish trends forming below the current price are also possible indicators of possible market trends.
Possible Market Insights
Technical charts have indicated some fascinating data on the trend of Ethereum. The month of May has particularly been marked by huge changes in the cryptocurrency which still has a huge footprint in the market. ETH has one of the largest market caps being just behind BTC. The SMA chart has the cryptocurrency holding at just above $700. This means that there might not be any declines beyond this level in the foreseeable future. The SMA is great for charting insights on a 100-hour basis. The next couple of days will thus see ETH being traded at well above $700. Another interesting technical indicator that shows support for this crypto is the MACD. The current data shows that while it might not be possible to break the $740 level once more, the price will remain well above $705 and possibly in the $715 range.
In summary, Ethereum will continue to have a great recovery this week and possibly in the week to come as well. The strong performance of the cryptocurrency in the last 100 hours has been impressive. The quick improvements that the crypto has seen will definitely encourage more buyers and the market will see subsiding pressure. Some of the main insights that can be observed from the market data are:
- A bullish trend is being established with the support level stabilizing at around $710.
- The price of ETH gained quickly against the USD after the initial recovery.
- While the price levels have lowered within the period of analysis, there are strong indications of support.
Ethereum (ETH) is a cryptocurrency with a huge market cap and great prospects. A lot of market analysts and investors are hoping for great improvements in the currency by the end of the year. Some of the initial targets for the crypto have not been met but if recent data is anything to go by, bigger possibilities definitely lie ahead.