Ethereum: The bounce has some more steam
- ETH bounce has a lot of steam left before bears can pounce back.
- Short term volatility won't die down soon, though.
Ethereum, the third largest cryptocurrency by market capitalisation, has a lot of steam left in this bounce that saw prices climbing up sharply from the prices not seen in more than a year. Although, the bounce won't end the volatility we've seen recently.
ETH/USD is down about 0.8 percent on day at $108.67 and trading in about two percent range for the day, thanks to peculiar weekend trading lower volumes. On the 720-minute chart of this crypto, the formation of a channel and the bounce from the lower end of it is a first sign of the bounce and rally. Although, prices are at the upper end of the bollinger bands, that doesn't mean they can't rally more, all the way towards upper end of the channel, seated around $190 currently.
Co-incidently, ETH's 21 weeks SMA too is placed above $200 for now, which is where the long term trend changes from down to up - a big test for bulls and bears there. Till then, short and medium term trend remains up.
ETH/USD 720-minute chart:
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Author
Manoj B Rawal
Independent Analyst
Manoj B Rawal, financial markets professional with about 11 years of experience in writing, editing and advising on stocks, currencies and fixed income.
