Ether price news and price prediction this week – February 17 to 23 – the coin is likely to correct to $227 this week
While the fundamentals look strong, do the technicals also point to a continued rally?
After Bitcoin, the institutional investors seem to be warming up to Ether. In the past week, investors were paying a hefty premium to buy Ether through Grayscale’s Ethereum Trust. This showed that institutional players are positive on the prospects of Ether in the long term.
Investors consider Bitcoin as digital gold and a good hedge for the traditional portfolio due to its uncorrelated nature. However, a study by San Jose State University has shown that Ether acted as a hedge against the US stocks, gold, and even the US dollar, for the period between December 2017 and December 2018. While the fundamentals look strong, do the technicals also point to a continued rally? Let’s do the Ether price analysis to find out.
Ether price prediction – February 17 to 23
The Ether price analysis of the weekly chart shows that a correction has started. Will the price rebound from the current levels or can it fall further? Let’s study the daily chart and do the Ether price prediction for the period between February 17 to 23.
Ether price chart – weekly
Contrary to our assumption, the bulls easily scaled above the overhead resistance at $239.30 but hit a wall just above the resistance at $288. The failure to cross above this level has attracted profit booking by short-term traders.
Currently, the bears are attempting to sink the price back below $239.30. If successful, it will be a huge negative as it will trap the bulls who had purchased after the break above $239.30. If the price does not reverse direction and quickly resume its up move, the bulls might be forced to close their positions that can drag the price lower. Below $239.30, the first support is at the moving averages and if that breaks, the decline can extend to $157.
Conversely, if the ETH to USD pair does not break below $239.30, the bulls will once again attempt to resume the up move. The levels to watch on the upside are $289.33 and above it $318.
The Ether price analysis of the weekly chart shows that bears are attempting to stall the recent rally. However, we expect lower levels to attract buyers. Let’s do the Ether price analysis of the daily chart to identify the important support levels to watch out for.
ETH to USD chart – daily
Ether surged above the overhead resistance at $239.30 on February 12 and continued its journey towards the first target objective of $288. However, the sharp rally of the previous few days had pushed the RSI deep into the overbought zone, which suggested that the rally was due for a consolidation or a correction.
The failure of the bulls to scale and sustain above $288 attracted profit booking and the ETH to USD pair turned down on February 15. As the markets had risen sharply in the previous few days, the pullback has also been equally sharp.
Currently, the bulls are attempting to keep the price above the previous resistance at $239.30, which is now likely to act as a strong support. If successful, the pair might remain range-bound for a few days before resuming its up move.
Ether price prediction for February 17 to 23: how to trade it
However, if the bears sink the price back below $239.30, the next support to watch out for is the 20-day EMA at $227.8. If the price bounces off this support, the bulls will attempt to resume the uptrend but if this support cracks, a drop to the 50-day SMA is possible.
We had suggested booking partial profits on the long positions in our previous analysis. The traders can keep the stop loss on the remaining long positions at $225. If the 20-day EMA breaks down, the correction can deepen. We do not suggest buying in a falling market. However, if the price rebounds off the 20-day EMA, it might offer a buying opportunity.
FURTHER READING: Ether and Ethereum: what is the difference?
FURTHER READING: What will 2020 hold for Ethereum and its cryptocurrency Ether?