Ethereum Price Analysis: ETH Rallying Towards $200 & $220

Ethereum price is climbing higher and it recently broke the $194.80 resistance area vs the US Dollar. ETH to USD is showing positive signs and it could rise further towards the $220.00 level.

Key Takeaways: ETH/USD

  • Ethereum price is surging and it cleared the $191.90 and $194.80 resistance levels against the US Dollar.
  • ETH/USD broke a key contracting triangle with resistance near $188.50 on the 2-hours chart (data feed from Bitstamp).
  • Bitcoin price is also rising and it cleared the $9,400 resistance area.

Ethereum Price Analysis

Recently, there was a downside correction in Ethereum price below the $188.00 level. However, ETH to USD found support near the $182.00 level and traded as low as $181.97.

Ethereum Price Analysis
Ethereum Price Analysis

Looking at the 2-hours chart, Ethereum price started a fresh increase from the $181.97 low and climbed above the 50 simple moving average (2-hours, purple). The bulls gained pace and pushed the price above the $188.00 and $191.90 resistance levels.

During the rise, the price broke a key contracting triangle with resistance near $188.50 on the 2-hours chart. It opened the doors for more gains above the 76.4% Fib retracement level of the downside correction from the $194.99 high to $181.97 low.

Ethereum climbed above the $194.80 resistance and the $194.99 swing high. Finally, it tagged the 1.236 Fib extension level of the downside correction from the $194.99 high to $181.97 low.

It seems like the price remained just shy of the $200.00 barrier. It is currently showing a lot of positive signs above the $194.00 and $195.00 levels.

If there is an upside break above the $198.00 and $200.00 levels, the price could continue to rise in the coming sessions. The next major resistance for the bulls is near the $220.00 level.

Conversely, Ethereum might correct a few points from $198.00 or $200.00 in the near term. In the mentioned case, the price is likely to find support near the $194.00 area. The next major support is near the $188.50 level since the 50 simple moving average (2-hours, purple) is positioned near the stated level.

Coronavirus Outbreak Setting Up ‘Very Bullish’ Coming Months for Bitcoin And Crypto Market

  • Dow Jones Industrial Average had its worst day since August and S&P 500 since October
  • “The current backdrop for gold is stereotypical of strong phases,” as gold scored a second straight monthly climb
  • BTC already up 27% YTD and gain further as coronavirus to lead to rate cuts and another round of quantitative easing

In one of its biggest declines, the Dow Jones Industrial Average fell by over 600 points on Friday as investors grew increasingly worried about the potential economic impact of deadly coronavirus.

While Dow had its 30-Stock average’s worst day since August, S&P 500 also had its worst day since October and the Nasdaq Composite fell 1.6%. This happened after the US declared the coronavirus a public health emergency within the country and American, Delta and United suspended all flights between the US and China.

Fear going into the weekend

First discovered in the Chinese city of Wuhan, the virus has now spread to at least 18 other countries. China’s National Health Commission confirmed 9,692 cases of the coronavirus with 300 deaths. The WHO also recognized the virus as a global health emergency on Thursday.

“There’s fear going into the weekend,” said Ilya Feygin, senior strategist at WallachBeth Capital.

“The theme coming into this year was the Fed and Trump are going to bail us out of any problems, but the virus is something neither one can do anything about. That’s a reason to become more fearful.”

Morgan Stanley’s chief US equity strategist, Michael Wilson says a major stock market pullback since October may be underway.

Gold scored a second straight monthly rise

Meanwhile, gold though pulled back from over six-year high scored a second straight monthly climb.

“The current backdrop for gold is stereotypical of strong phases,” said Adrian Ash, director of research at BullionVault.

“Over-priced stock markets are wobbling, global growth is slowing hard, and political uncertainty is worsening.”

“We are operating in an environment in which safe assets are scarce … Investment demand will continue to flow to gold because capital is seeking shelter from negative real yields,” said TD Securities commodity strategist Daniel Ghali.

Setup for the crypto market in coming months very bullish

Bitcoin meanwhile is holding steady above $9,000 since Tuesday. Currently, BTC/USD is trading at $9,413, up 27% YTD.

As can be seen, crypto markets have diverged from the equity markets ever since we entered into a new year.

While market strategist and economists were “talking up the global economic outlook and hailing 2020 as a good year for markets with no major risks on the horizon,” in two weeks the deadly coronavirus outbreak has changed that prognosis, said the former partner at Goldman Sachs, Spartan Black of crypto hedge fund The Spartan group.

With the affected cities coming to a halt, the factory output in the near term would be affected. And the “travel curbs and related impact will likely take a few bps off global GDP growth in the next 2-3 quarters. The equity markets have started to price that in. Further signs of weakness and market instability may cause central banks to spring into action,” said Spartan Black.

That means, further rate cuts and another round of quantitative easing are likely to follow with the ECB already having started its bond-buying program in Sept. All of this combined with halving event coming up, “the setup for the crypto market in coming months is very bullish,” he said.

Price Analysis Breakdown

As you can see from the charts, our preferred cryptocurrencies; Bitcoin and Ethereum have performed excellently on the backdrop of the current Global Issues. The graphs demonstrate our extensive research and skillsets, the ability to pick two of the best from 1000,s that are on offer, during a transitionary period, where many private investors had doubts regarding the returns from Cryptocurrencies. To join our exclusive investment club visit SmartCoin.

Bitcoin Price in USD. 1-31st January 2020
Ethereum Price USD. 1-31st January 2020

SmartCoin® on track for 30% growth in January in a record-breaking month..

This year started very well, after closing many positions on the run-up to Xmas, we placed many long bets on Bitcoin and Ethereum between 26 Dec and 4th January and we have been rewarded, with Bitcoin moving 35% YTD and Ethereum also posting 40% gains. The Bulls are running the show in 2020…we expect substantial price movements above this point… to find out more visit SmartCoin

Bitcoin Price Back at $8,700 As Institutional Investors Appetite for BTC Grows Exponentially..

  • Market gets excited as bitcoin makes way, a big move this week could be in order
  • Altcoins surged as well, with Bitcoin Gold, Dash, Zcash, and Bitcoin Cash being the top performers
  • Bakkt’s bitcoin futures delivery grows by over 1,600% while CME traders remain more bullish than any others

Today, Bitcoin yet again took a jump to climb to $8,700 level. This surge in price also saw the volume rising, from around $350 million, but it is still down at $522 million, as per Messari. Altcoins climbed in tandem, with Ethereum Classic (19.4%), Bitcoin Cash (13.09%), Zcoin (10.4%), EOS (7.56%), and Dash (7.45%) being the top performers, as per Coincodex.

Source: Coin360

As Bitcoin tries to run away with the bulls, it has key resistance present at $8.6 – $8.7k where trader Credible Crypto expects BTC to reject. He said,

“Could be something small, could be more significant. Once we get past that region we are off to the races.”

Meanwhile, popular trader Majin sees it testing $8,800 or $8,900. But trader BitBit is feeling extremely bullish as he says, “it’s getting bullish af here,” as he notes 8,250 support level, 8,500 resistance level, Mex OV above 100k, CME bitcoin futures Friday close was at 8,505, Jan futures expiry this coming Friday, and 106 days to end this buy the halving narrative.

All this means “Big move is coming this week,” he said.

Bakkt’s Futures Delivery Grows by 1,600%

Bitcoin price took a jump while the interest in the world’s leading cryptocurrency is growing among the institutional investors.

Bakkt by Intercontinental Exchange which is also behind Nasdaq delivered 230 BTC worth more than $2 million in notional value on January 17.

This has been a significant increase, of 1,625% from 2019’s average of 13.3 Bakkt Bitcoin futures contract deliveries. Last year, only 15, 17, and 8 BTC contracts were held on Bakkt until expiry in October, November, and December respectively.

Although a small amount in comparison to daily trading volumes, in itself, is huge as the physical delivery of Bitcoin shows that institutional investors not only want to trade in Bitcoin but are also interested in holding BTC.

CME Traders Remains More Bullish than any others

Last week we reported how CME traders have been more bullish than other platforms and they continue to be bullish as CME’s June futures contracts are close to a 5% premium.

The premium rate for June contracts suggests investors are bullish on Bitcoin in the mid-term. However, both January and March premium rates fell this week meaning short-term expectations are bearish.

In separate news, Bakkt and Twitter CEO Jack Dorsey’s Square might soon be competing against each other.

Recently, at the World Economic Forum (EEF) in Davos, while sharing the plans for their consumer-facing app, Bakkt president Adam White said this new offering would involve a range of digital assets including virtual goods, equities, and other forms of digital assets, making a shift from its original plan for being solely focused on Bitcoin.

Interestingly, payments company Square obtained a patent earlier this week that will allow the users to pay and receive in any denomination which may extend to support securities, and derivatives in the future as well.

There hasn’t been a crypto’s “killer app” created which has White confident in his latest product that he says would closely resemble PayPal for digital assets, instead of just an exchange.