Ether price news: the upward trend will likely remain in February
Ether price prediction for February: What do technicals forecast?
Ether prices are pushing higher and are poised to break out during February. The gains are likely to be sentiment-driven, as many experts believe fears over the coronavirus may affect crypto prices. Another possible reason is Ethereum 2.0, an upgrade to the current version, which is scheduled to be released near the mid-point of 2020. Technical indicators point to accelerating positive momentum, which points to higher Ether prices.
Ether price analysis
Ether has broken out to fresh 4-month highs. What is interesting is that the coin has rallied despite a rising dollar which has hit multi-month highs. Both the dollar and cryptocurrencies are experiencing a flight to safety.
The weekly price action shows that prices are poised to test resistance levels as momentum accelerates. The first level of target resistance on the weekly chart is seen near a downward sloping trend line that comes in near 274. A close above that level would target the June 2019 highs at 358. A break above that level would lead to a test of July 2018 highs at 518.
Momentum is rising across all tenors. The fast stochastic has accelerated after generating a crossover buy signal in early January. The trajectory of the fast stochastic is very steep pushing the index into overbought territory at 83, which would foreshadow a correction.
The weekly RSI (relative strength index) is accelerating higher with a steep upward trajectory. The RSI is not overbought. Reading on the RSI above 70 is considered overbought while a reading below 30 is thought of as oversold.
Medium-term weekly momentum has also turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram broke through the zero-index level which is also a buy signal. The histogram is printing in the black with an upward sloping trajectory which points to higher prices.
Ether price prediction: take away
Ether prices accelerate higher. Despite the rally in the dollar, the demand for Ether remains strong. Momentum has turned positive, which points to higher prices. Despite short term indicators showing that prices are overbought, the trend throughout February will remain upward, as prices test resistance levels.
FURTHER READING: Ether and Ethereum: what is the difference?
FURTHER READING: What will 2020 hold for Ethereum and its cryptocurrency Ether?