ETH/USD Price Analysis (26 Jan 2018) – Ethereum Showing Relative Strength

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Ethereum is still second to Bitcoin regarding market cap. However, Ethereum handles more transactions than all the other cryptocurrencies combined, so is indeed a leader in that respect.

Ethereum has also been showing signs of relative strength recently. With the cryptocurrency market acting poorly the last couple of weeks, Ethereum is down only 25% from its all-time high, whereas Bitcoin is down nearly 50%.

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A lot will depend on how the overall cryptocurrency market behaves, but for now, Ethereum is holding up well and could continue higher if conditions improve.

Let’s take a look at Ethereum on multiple timeframes and see what the charts are telling us.

ETH/USD – Weekly Chart

ETH/USD – Weekly Chart

We can see on the weekly chart that Ethereum has been acting strong since breaking out back in November 2017.

It has respected its 10-week simple moving average (SMA) while moving higher and remains above it today, despite the cryptocurrency market performing poorly the last couple of weeks.

If Ethereum continues its move higher, the near-term target is the high at $1420.

Ethereum may need to consolidate and rest here for a while before resuming its uptrend. If the price breaks below the 10-week SMA, then we will likely see a deeper pullback. Look for support at the 20-week SMA or near $700 if this occurs.

ETH/USD – Daily Chart

ETH/USD – Daily Chart

The daily chart shows how Ethereum has moved higher in a series of steps. Consolidating, breaking out higher, consolidating and then breaking out higher again.

Ethereum is now consolidating once again, will we soon see a breakout higher and a continuation of this pattern? If so, the near-term target would be the highs at $1420.

There was a heavy volume day on the 17th January 2018. The big red bar seems concerning at first, but if we look a little closer, we can see that the price found support this day at the 50-day SMA. The price didn’t close far from where it opened, so it’s hard to determine if the heavy volume came from buyers or sellers.

If Ethereum breaks below the 50-day SMA, look for support between $700 and $800 or near the 100-day SMA.

ETH/USD – 4-Hour Chart

ETH/USD – 4-Hour Chart

triangle pattern can be seen on the 4-hour chart. If the price breaks out higher from this, then we could see Ethereum moving up towards $1400.

If the price breaks lower the next support area would be near $750, an area where the price has broken out from and found support at before.

Key areas to watch:

  • $1420 (All-time High) – Target area if Ethereum continues higher.
  • 10week & 50-day SMA – Bullish if the price can remain above these.
  • 20week & 100-day SMA – Potential support areas if the price moves lower.
  • $700 – $800 – Potential support area if the price moves lower.
  • Triangle Pattern (4hour chart) – Watch to see what direction price breaks out in.

Will Ethereum one day overtake Bitcoin to become the worlds largest cryptocurrency? Let us know your thoughts in the comments section below!

DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

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Darren Brazer
Managing Editor

Managing Editor, Tech Journalist, and Financial Market Analyst. Darren has over four years of experience as a market commentator and two as a journalist. As Darren's experience in the blockchain industry has grown, so has his ability to spot stories, build industry contacts, and maintain a factually accurate standard of reporting.

Darren started at [blokt] as a journalist, and due to his incredible attention to detail, he progressed to an Editor position. This was followed shortly after by his promotion to the Managing Editor position. He is responsible for maintaining our editorial process and guidelines for journalists, and for ensuring our editorial policy demands high professional and ethical standards from our writers.

Darren has previously held positions at investopedia.com, ics-digital.com, and icmarkets.com.

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