Ether price prediction this week: the coin is likely to rally in the short-term
Will the upgrade to Ethereum 2.0 be a major step that will boost prices?
Ethereum is likely to be in focus for the next few days as it starts the process of transition from Ethereum 1.0 to Ethereum 2.0. This move will shift its current Proof-of-Work consensus algorithm to Proof-of-Stake. According to Ethereum’s co-founder Vitalik Buterin, this will make Ethereum blockchain more secure than Bitcoin.
During the week, records from monitoring resource Etherscan showed that a total of 92,000 Ether was moved from a single wallet to US crypto exchange Kraken. Initial fears were that Buterin is selling part of this holding. However, later, Ethereum co-founder and core developer, Jeffrey Wilcke, declared that he was the seller as he needed the money to fund his game.
Will the upgrade to Ethereum 2.0 be a major step that will boost prices? Let’s analyse the charts to find out.
Ether price prediction chart: weekly
For the past few months, Ether has been trading inside a descending channel. After bouncing off the support line of the channel, the bulls are currently attempting to carry the price to the resistance line of the channel, which is close to $174.
A breakout of the channel will signal a change in trend. However, if the bears defend the resistance line of the channel, the altcoin might continue to trade inside the channel for a few more weeks. The downsloping 20-week EMA and the RSI in negative territory suggest that bears have the upper hand.
A breakdown of the channel will be a huge negative and can drag the price to the immediate support at $100. If this level also cracks, the next support is at $80. While Ether’s price analysis of the weekly chart does not offer too many bullish signs, do we find any reversal patterns on the daily chart? Let’s find out.
ETH to USD chart: daily
On the daily chart, we like the way the price rebounded sharply from the support line of the channel on December 18. This shows strong demand at lower levels. On December 29, the bulls pushed the price above the 20-day EMA, which triggered our buy recommendation given in the previous analysis.
Above 20-day EMA, the first target is a move to 50-day SMA, which is at $148. If this level is crossed, a rally to $157.36 is likely. The 20-day EMA has flattened out and the RSI is close to the midpoint, which suggests that the selling pressure has reduced.
Our bullish view will be invalidated if the price turns down from the current levels and plummets below the recent low of $121.93 hit on December 27. Below this level, a retest of $115.95 will be on the cards.
Ether price this week: How to trade it
The traders can hold their long positions with an initial stop loss of $121. Partial profits can be booked close to the 50-day SMA if the bulls struggle to scale above it. As the price moves up, the traders should trail their stops to reduce their risk.
FURTHER READING: What will 2020 hold for Ethereum and its cryptocurrency Ether?
FURTHER READING: THE YEAR IN REVIEW: Top traded cryptocurrencies of 2019