Ethereum (ETH): Stuck in range – breakout could retest $150
|- Ethereum traded lows around $81.50 before commencing the recovery mid-December.
- The hard fork upgrade is not expected to introduce a new asset.
- The path of least resistance is to the north.
Ethereum has started the new year trading relatively high in comparison to those at the beginning of December 2018. The crypto had embarked on a gain trimming exercise in November amid market instability. In addition to breaking below $100, Ethereum traded lows around $81.50 before commencing the recovery mid-December.
In other news, the network is getting ready for the upgrade that was scheduled for January 2019. The hard fork upgrade is not expected to introduce a new asset. However, it will see Ethereum’s network capacity increased significantly. There are a number of other vital improvements including laying the ground for other future upgrades like the sharing technology and the transition from the proof of work to proof of stake consensus algorithm.
Meanwhile, Ethereum is currently stuck a range after the price could not sustain growth above $150. A correction from the high marginally above this level explored the levels towards $110. However, a bounced occurred before the new year as ETH/USD recovered slight above the trendline. The range resistance at $150 is still the key hurdle for Ethereum buyers.
However, it is likely a hype surrounding the above upgrade scheduled to take place in two weeks’ time will support a retest and overcome the resistance at $150. Presently, Ethereum is exchanging hands at $142. The price is above both the moving averages to show that buying activity has not gone down in spite the bears increasing their grip. Likewise, the RSI on the 1-hour chart is almost brushing shoulders with the overbought for the first time in 2019. The MACD on the same chart is holding its position above the mean level to indicate that the path of least resistance is to the north.
ETH/USD 1-hour chart
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