Decision Time Looms Over Ethereum
Ethereum has followed Bitcoin in moving higher in the previous week. In the last five days, the world’s second biggest digital coin has registered three failed attempts to move past the $148 mark, a first of many resistance levels located in this area.
As seen in the chart, the levels around the $150 handle have created a confluence of resistance, consisting of first horizontal resistance at $148, the down-slipping wedge resistance at $150 and the second horizontal resistance at $153. Moreover, the 100-DMA sits just below the $160 mark. Historically, levels around $150 always played an important role.
At this moment, the focus is on the descending wedge. Given that the price action has spent the last five months within the wedge, a break to either side is likely to trigger a big move. Judging by the current state of the market, it looks like Ethereum is more inclined to break to the upside and potentially target the 200-DMA at $185.
On the downside, the first level of support is located at $134 while the wedge support currently trades at $117. The mid-term target for the bears is the $100 handle.
As seen in the chart, the levels around the $150 handle have created a confluence of resistance, consisting of first horizontal resistance at $148, the down-slipping wedge resistance at $150 and the second horizontal resistance at $153. Moreover, the 100-DMA sits just below the $160 mark. Historically, levels around $150 always played an important role.
At this moment, the focus is on the descending wedge. Given that the price action has spent the last five months within the wedge, a break to either side is likely to trigger a big move. Judging by the current state of the market, it looks like Ethereum is more inclined to break to the upside and potentially target the 200-DMA at $185.
On the downside, the first level of support is located at $134 while the wedge support currently trades at $117. The mid-term target for the bears is the $100 handle.
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