Ethereum
This “Golden Pocket” Could Wipeout Ethereum’s Momentum
Cole Petersen | Apr 23, 2020 | 20:00
- Ethereum is rapidly approaching its local highs as bulls begin garnering significant strength
- There is one “golden pocket” resistance level that could spark a major selloff if ETH is rejected here
- Some top traders are still noting that they expect this uptrend to extend significantly further
The intense uptrend Ethereum incurred yesterday was able to further extend overnight, with the cryptocurrency pushing will into the mid-$180 region as its buyers make a bid at revisiting its local highs at $190.
The cryptocurrency does appear to have some significant underlying strength, as it has been consistently outperforming Bitcoin and many other major altcoins throughout the past several days.
There are a few key technical resistance levels that are fast approaching, however, and a firm rejection at any of these levels could be dire.
Ethereum Rallies Towards $190 as Analysts Target Horizontal Resistance Around $220
At the time of writing, Ethereum is trading up over 3.3% at its current price of $185, marking a notable climb from daily lows of $175 that were set yesterday right before the crypto incurred another leg up that led it into the $180 region.
After pushing to highs of $187 overnight, the crypto faced a harsh rejection here that ultimately led it to decline to lows of $181 – from which point it has been able to recover.
It now appears that ETH may continue extending this uptrend until it reaches the price region existing right around $220 – as one analyst notes that this is its key near-term horizontal resistance region.
“ETH: Opened a swing position on Ethereum. Looking to add size on pullbacks,” the analyst noted while pointing to the support and resistance levels marked on the below chart.
Image Courtesy of Loma
Here are the Levels that Could Spark the Next Massive ETH Movement
It doesn’t appear that Ethereum bulls are in the clear yet, however, as another popular pseudonymous trader explained in a recent tweet that ETH is trading just above a key descending trendline that could offer some insights into its trend.
Although the crypto has been holding above this trendline, the same trader also notes that a rejection at the crypto’s “golden pocket” resistance at its .618 fib level could wipeout ETH’s momentum and lead it lower.
“ETH: If market strength continues, here is my plan: Watch green trendline for general shift in the market. Upon break/obvious close outside/below, I short pullbacks. OR Watch for spike/rejection at golden pocket .618/.65 then short, while the obvious short (X) gets wiped out,” he noted.
Image Courtesy of Chase_NL
Featured image from Unsplash.
