Ether price news this week January 20 to 26: After a minor consolidation, the coin is likely to rally above $180
Here is what price analysis suggests about trading Ether.
The Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert has again said that Bitcoin and Ether are commodities and will be regulated by the CFTC. Tarbert said that the regulator is providing these digital currencies with the features of the futures market, which will help to legitimise these markets.
Ethereum’s Serenity upgrade is likely to get delayed, according to the Ethereum Foundation. Therefore, until a full ‘Ethereum 2.0’ roll-out, a group of developers will work on the existing chain to keep it operable during the transition.
Though the fundamentals determine the long-term trend of an asset class, usually price starts moving before the event as informed market participants start to build their positions. Let’s do the Ether price analysis to see if we spot a definitive trend.
Ether price prediction: January 20 to 26
The Ether price analysis of the weekly chart will give us the long-term picture while the daily chart will help us do an Ether price prediction for January 20 to 26.
Ether price chart: weekly
Ether broke out of the downtrend line, which is a huge positive because the price had turned down from this line on three previous occasions (marked via ellipse on the chart). This shows that the bulls are back in the game.
However, the upward move hit a wall close to the 50-week SMA. This shows that the bears are selling aggressively at higher levels and will now attempt to sink the price back below the downtrend line. If successful, this will suggest that the current breakout was a bear trap.
Conversely, if the price bounces off the downtrend line or the support at $157.36, the bulls will make another attempt to break above the 50-week SMA. If successful, the pair is likely to move up to $239.30.
Price analysis of the weekly chart suggests a retest of the breakout level. Let’s do the Ether price analysis of the daily chart to determine whether the support will hold or not.
ETH to USD chart: daily
Ether surged above $157.36 and the downtrend line on January 14. The bulls defended the $157.36 support on January 15 and 16, which shows that buyers are keen to get in at lower levels. The 20-day EMA is sloping up and the RSI is in the positive territory, which suggests that bulls are in command.
However, the bears are unlikely to give up without a fight. The price turned down from $179.29 on January 18. It can now dip to $157.36, which is again likely to act as a strong support. On a bounce off this level, the bulls will attempt to resume the uptrend. If they can push the price back above $179.29, a rally to $200 is possible.
Contrary to our assumption, if the bears sink the price below $157.36, a drop to the 20-day EMA is likely. If this support also cracks, the decline can deepen to $140. However, we believe there is a low probability of this occurring.
Ether price prediction for January 20 to 26: How to trade it
The traders can hold their long positions but trail the stops to $130. Others, who have not established any positions can buy on a strong bounce off $157.36. If the bulls again struggle to break above $180 levels, partial profits can be booked and the stops can be trailed higher for the rest. We suggest traders stay on the sidelines if the price slumps below $157.36.
FURTHER READING: How to use Ethereum. How to buy Ethereum
FURTHER READING: What will 2020 hold for Ethereum and its cryptocurrency Ether?