After a bull run last week, ETH bottomed out at $168. The Ethereum price is finally recovering once again, this time aiming for the $180 level. Trading at $178 on Bitstamp at the time of writing, ETH peaked at $180 earlier today. Let’s see if there are any new developments in Ethereum since yesterday and if the charts tell us anything.
The Ethereum community is still gearing up for ETH 2.0. Vitalik said on a podcast with 80000hours, that he was “very confident” in the new iteration of the Ethereum network, and the Ethereum Foundation put out a developer experience survey as they are getting ready to showcase the new network at Devcon in Germany November 19th-20th.
Yesterday, Prysmatic Labs who are developing Prysm – a full featured sharding client for Ethereum 2.0 – released an Ethereum 2.0 roadmap update. The Prysm client is designed to process transactions much faster than legacy ETH 1.0 clients, and is going to be a big step in the right direction for solving Ethereum’s scalability issues.
As I’ve been saying in the past, while the development of ETH 2.0 doesn’t seem very exciting, if the new update can in fact solve Ethereum’s network congestion, the market’s reaction will be profound and I personally expect the Ethereum price to rise by at least 50%.
Ethereum Price Analysis
Relative Strength Index: The RSI at the time of writing is at a healthy 51 points, this means the market is healthy and has enough strength to make moves in either direction. Unfortunately, since RSI’s previous action was bullish, we might see a slight dip below 40 points which might cause a retracement on the market.
Bollinger Bands: The price is currently within the upper and lower bollinger bands range, however we can see its approaching the lower band and could cross over slightly before rebounding.
Volume: After the bull run earlier today when the price hit $180, the volume at the time of writing is very minimal. This is again to be expected since its the weekend.
Ethereum Price Prediction
In yesterday’s Ethereum price prediction, I said:
“Most likely the price will retrace slightly towards the MA line and harness power at that level for the next move.”
While I was wrong about the market retracing, I was right about Ethereum harnessing power for its next move. I definitely didn’t expect a test of $180 during the weekend, but that’s the beauty of crypto markets – they are active 24/7.
For my next price prediction, let’s take a look at the indicators.
The RSI is telling us that the market is healthy and has enough strength for another move, Bollinger Bands are telling us that the market wants to start trading sideways but there is slight bearish pressure. Finally, the volume is telling us that market action will be sporadic and unexpected – at least during the weekend.
According to the above indicators, my prediction is that Ethereum will attempt to hold the current support at the $178 level. ETH/USD might touch $180 a few more times, but it’s going to be hard to establish support at that level. If the current support can hold through Sunday, I would expect more bullish momentum, even if Bitcoin doesn’t perform that well. I’m also anticipating a slight decoupling of ETH from BTC as the community is gearing up for Ethereum’s 2.0 launch.
Exciting times ahead for Ethereum, so if you don’t want to feel any FOMO make sure you keep a close eye on the price and set your targets.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.