Another weekend depression hit the crypto market. Almost all the coins lost their values, but as always they are recovering again. Ethereum, the second largest coin in the crypto market, has lost over 20 percent over the week, but now the coin is on its way upward. In spite of all the rumble, Ethereum still holds over $103 billion in market cap. Because of the market volatility, the coin is also attracting a huge number of traders, as in the past 24 hours, trading volume was above $3.1 billion.
- ETH/USD lost 20 percent over the week but is now recovering with a good pace
- The pair is facing strong resistance at $1090 and $1160, which if breached can result in a long bullish run
Like most of the coin, Ethereum started the week with a downward pace and dipped from $1320 to $765. Finally, the coin found some support and started to recover. But it again faced a stiff resistance at $1091, but strong support at $990 was also present throughout the week. The coin finally breached the resistance level, only to face another at $1160.
Because of the steep dip in the early week and lack of any bull, the 100 SMA is running below 200 SMA, but the gap between them is narrowing down. The price curve is currently approaching towards 61.8 percent Fibonacci level from 50 percent.
The technical indicators are also indicating strong bullish signals. Stoch and RSI are soaring, Stoch even crossed the overbuying mark. RSI is at 63 percent. MACD is also indicating bullish signs.
The scaling of the blockchain network is becoming a huge issue with the increasing number of transactions. This week again, Ethereum network congested forcing the exchanges to halt withdrawals.
Also, the US rating agency Weiss Ratings has announced that they will Issue letter grades on multiple cryptocurrencies including Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, NEM, Litecoin, Stellar, EOS, IOTA, Dash, NEO, Monero, Bitcoin Gold and many others. The new Weiss Cryptocurrency Ratings, to be released January 24, are the first by a financial rating agency.Trade on ETH/USD
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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