All things constant and including this weekend’s events, odds are Ethereum might add to their gains today. It’s a tad bit stable on a day-to-day basis but with firm foundations over the weekend, chances are ETH are padding ready to make a comeback. Technically, we remain bearish that’s until buyers show their intent and breach $500, our immediate resistance line.
From the News
Interesting development in recent times especially news out of China. We all know how Chinese regulators perceive cryptocurrencies and their complementing fund raising model, ICOs. In fact, they banned ICOs in late August with the order taking root in early Sep 2017. Justifying their move, they labeled ICOs as scams and those found doing so within their jurisdiction liable for prosecution and a probable jail term. Fast forward, 11 months later and they are literally thawing.
With odds of re-evaluation and creation of a safety net for investors through fitting regulations, Ethereum (ETH) demand might be making a comeback. That’s of course once we get official confirmations from the China Banking Regulatory Commission (CBRC). At the moment what we do know for sure is that Node Capital is eyeing the US market with a 200,000 chest of ETH ready for investment.
The Beijing-based investment company is not new to investment within the crypto cycle. They are investors in HBUS and more than 160 crypto businesses mostly based in China. Their main partner, Jun Du is also the founder of Huobi. Huobi as we know attracts massive daily trading volumes and is one of the biggest exchanges in the world.
Ethereum (ETH) Technical Analysis
Undoubtedly, ETH prices are trending at a key inflection point. Bears are definitely in charge when we take a top-down approach and as the adage goes, trading with the trend is profitable. Now, considering that ETH is actually stable and up one percent in week over week basis at the time of press, we might be up for a reversal.
This is especially if we see rejection of lower lows at $400 or April lows in weeks to come. If that’s the case, we might see a rebound back to this year’s highs. Otherwise any depreciation would welcome sellers who might then cut ETH back to $200 or there about.
As before, our sell targets stand at $350. Nonetheless, considering recent price action-more so events of June 29 and 30, odds are ETH prices might add to their longs if all things remain as they are. Note that, not only did we see higher highs but there was a significant spike in volumes exceeding recent averages supporting this appreciation.
What this means is that risk off traders can begin buying with stops at $400. On the other hand, conservatives who need assurances can wait for up-thrusts past $500 or June 22 highs at $550 to initiate longs. In both trade plans, ideal targets are at $630-June highs and $850-May highs. Remember, any rapid depreciation below $400 automatically cancels this buy projection reasserting sell trend.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
Ethereum image via Shutterstock.