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Ether price news: the coin is showing signs of bottoming out

By Rakesh Upadhyay

Ether price prediction this week January 6 to 12, 2020

Ethereum completed the Muir Glacier upgrade, its second hard fork in a month, on Jan 2. With this upgrade, the difficulty bomb has been delayed for another 4,000,000 blocks. The difficulty bomb increases the difficulty of a new block creation so as to push the network towards a proof-of-stake consensus algorithm. Following the latest hard fork, the average block time has reduced by about 25 per cent.

While the Ether price news fundamentals are looking strong, the analysts are divided about its technical picture. While a few anticipate Ether to rally roughly 100 per cent to about $260 (£197, €232), others believe that it might dump to $80.

Such opposing target objectives confuse the trader about the next course of action. Hence, let’s do the Ether price analysis from both a long-term and a short-term perspective and see what the charts project.

Ether price prediction: January 6 to 12

First we will look at the Ether price analysis on the weekly chart, to identify the larger trend and then move on to the daily chart to do the Ether price prediction for January 6 to 12.

Ether price chart: weekly

The price action in Ether has been lackluster. It shows that the bulls are in no hurry to buy at these levels. The 20-week EMA is sloping down and the RSI is in the negative zone, which suggests that the bears have the upper hand.

If the bulls fail to push the price above the overhead resistance at $157.36, the Ether to USD pair might remain range-bound for a few more weeks. The downtrend will resume on a break below $115.95.

Conversely, if the pair can scale above the overhead resistance at $157.36 and the downtrend line, it will indicate a possible change in trend. The first level to watch on the upside is $184 and above it $200. Ether price analysis of the weekly chart does not show the start of a new uptrend yet. Let’s do the Ether price analysis of the daily chart to see if we spot a new uptrend.

ETH to USD chart: daily

Our buy recommendation had triggered on December 29 after the price closed (UTC time) above the 20-day EMA. After a few days of minor consolidation, the price again made a decisive move on January 3. Currently, the price has reached the 50-day SMA, which is likely to act as a stiff resistance.

However, the price action of the past few days shows that the bulls are back in the game. The 20-day EMA has started to turn up and the RSI has risen into the positive territory, which suggests that the selling pressure has weakened. A break above the 50-day SMA can carry the price to $157.36.

Conversely, if the bulls fail to push the price above the 50-day SMA, the Ether to USD pair might remain range-bound for a few more days. The first support will be at the 20-day EMA and below it $125.51. A break below $121.93 can drag the price to the recent low of $115.95.

Ether price prediction for January 6 to 12: How to trade it

The traders can hold their long positions with the stop loss placed at $124. As the price moves higher, the traders can trail the stops to protect their paper profits.

FURTHER READING: What will 2020 hold for Ethereum and its cryptocurrency Ether?

FURTHER READING: How to use Ethereum. How to buy Ethereum

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