Ethereum struggling to gain a breakout momentum, targeting $ 180 in the short term
Ethereum was able to continue to move higher today after ETH outperformed Bitcoin and the crypto markets yesterday. However, this upward movement is very uncomfortable, and ETH is still struggling to overcome the $ 170 level.
Analysts are currently noticing that Ethereum could see another short-term price drop to $ 155 before it can extend its recent uptrend.
$ 155 is a milestone. A drop to $ 155 might be enough to push it through a descending trend line for years. Meanwhile, a continuous break above this level is likely to open the gate for a parabolic movement.
Ethereum struggling to gain a breakout momentum
At the press time, Ethereum is down more than 2% and trading at $ 165, marking a slight drop from $ 167 set last night.
ETH struggled to surpass $ 170 in the time after the last major sell-off happened last Saturday when the price fell from a high of $ 178 to a low of $ 162.
$ 165 where the price is fluctuating is also the 61.8% Fib retreat of the recent wave from a low of $ 161 to a high of $ 171. Current price action against Ethereum suggests there is a risk of further losses below the $ 162 support.
On the upside, there are many barriers near $ 168 and $ 170. Also, the main downtrend line this week remains active, with resistance near $ 168 on the hourly ETH / USD chart.
The major resistance is still near the $ 170 level. Therefore, a successful close above $ 170 is required to start a strong move. Subsequent resistances are visible near the $ 178 and $ 180 levels.
Source: Trading View
Calmly analyst explained that he doesn’t believe ETH is ready to set a new local high and may need to drop to the key support at $ 155 before rising to $ 180.
#Ethereum / $ETH – I’m still not convinced we see bullish continuation yet. Last time we were at this weekly s/r lvl, we consolidated for 12 weeks before finally breaking down
I think it will take more than one test of this lvl for it to break. I expect to see ~$155 before $180 pic.twitter.com/8JFOptee8X
— Calmly | full-time trader (@im_calmly) January 22, 2020
Another analyst, Galaxy, explained that ETH is currently on track to break the trend line for years and that weekly closures above this level could cause it to rise to $ 850.
$ETH is weeks away from breaking out its 2-year downtrend.
Possible Bull signal incoming next week.
February is take-off month. pic.twitter.com/G7MUzIA03Y
— Galaxy (@galaxyBTC) January 21, 2020
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