Ether price news and price prediction this week January 27 to February 2
Ether is likely to remain range-bound next week with a bullish bias
Though Bitcoin is the leader in the crypto space, it was Ether that was most correlated to the other cryptocurrencies. A report by leading cryptocurrency exchange Binance put Ether’s average correlation coefficient at 0.69.
Another report by Swiss investment firm CV VC showed that the valuation of the top 50 blockchain-related firms in the Swiss canton of Zug – known as “Crypto Valley” within the industry – dropped by 40 per cent as the price of Ether slipped in 2019.
Ether is the largest altcoin and the most correlated to the other cryptos. Let’s do the Ether price analysis to determine its next likely directional move.
Ether price prediction: January 27 to February 2
Let’s do the Ether price analysis of the weekly chart to see if we spot a long-term trend. Thereafter, let’s study the daily chart and do the Ether price prediction for the period January 27 to February 2.
Ether price chart: weekly
Ether dipped below the critical support at $157.36 last week but the bears could not capitalise on the breakdown. This shows that buyers are keen to jump in at lower levels. The bulls will now attempt to push the price to the 50-week SMA.
This level is likely to act as a stiff resistance once again. However, if this level is scaled, the ETH to USD pair is likely to pick up momentum and rally towards its target objective of $239.30. The up move might face resistance at $200 and again at $223 but we expect these levels to be crossed.
Conversely, if the bounce fails to rise above the 50-week SMA, the pair might remain range-bound for a few more weeks. Our bullish view will be invalidated if the price turns down from the current levels and plummets below the $157.36 to $155.15 support zone.
Ether price analysis of the weekly chart points to a state of indecision. Let’s do the Ether price analysis of the daily chart to see if we spot any bullish setups.
What is your sentiment on ETH/USD?
ETH to USD chart: daily
Though Ether dipped below the downtrend line on January 24, the bears could not sustain the lower levels. The long wick on the candlestick on that day shows strong buying by the bulls on dips.
The failure of the bears to break below the support again on January 25 attracted buying and the price recovered sharply on January 26. There is a minor resistance at $171.13, above which a move to $179.29 is possible.
A break above $179.29 is likely to resume the uptrend and carry the price towards its next target objective of $200. The upsloping moving averages and the RSI in the positive territory suggest that bulls have the upper hand.
Our bullish view will be negated if the price turns down from the current levels and plunges below the critical support at $157.36. If the price sustains below this level, a drop to the uptrend line at $140 is likely.
Ether price prediction for January 27 to February 2: How to trade it
As the price has bounced off the strong support at $157.36, the traders can hold their long positions and trail the stop loss to $140. Partial profits can be booked if the price fails to break out of the overhead resistance a $180.
FURTHER READING: Ether and Ethereum: what is the difference?
FURTHER READING: What will 2020 hold for Ethereum and its cryptocurrency Ether?