In brief:
Bitcoin has led a resurgence in the crypto market and looks set to erase all losses experienced in mid-March.
With BTC currently experiencing sideways movement, Ethereum could experience a second wave up.
The Eth 2.0 upgrade of Serenity, is scheduled for July 2020.
There is a general sense of optimism in the cryptocurrency markets that has been brought about by a resurgence of Bitcoin. The King of Crypto has broken the $6,900 resistance level. BTC is currently trading at $7,300 and looks set to erase all losses it experienced in the month of March due to the impact of the Coronavirus. When we look at our favorite alt-coin of Ethereum (ETH), the cryptocurrency has experienced the proverbial resurrection after gaining 27% between the 3rd and 7th of April 2020. In this time period, the price of Ethereum moved from $137 to a local high of $175.
Bitcoin’s Sideways Movement Might Allow ETH to Move Higher
As earlier mentioned, Bitcoin seems to be consolidating around the $7,200 – $7,300 zone thus giving Ethereum the room needed to also consolidate and continue on its upward trajectory. It is a known fact that once BTC starts to move in a sideways movement, altcoins thrive.
6-Hour ETH/USDT courtesy of Tradingview.com
Further looking at our favorite 6hr chart, we find that the Ethereum price is trading above the 0.5 Fibonacci retracement level identified in an earlier analysis. Our ETH/USD chart shows that $168 is offering a good level of support for ETH. Additionally, its current price at $169 is above both the 50 (white) and 100 (yellow) moving averages. This, in turn, means that it is currently in bullish territory in the market after breaking the wedge we had also identified in our last analysis.
However, for the price of ETH to reclaim $200, it has to overcome the following resistances.
$179
$188
$195
Additionally, the 6-hour MACD and MFI indicate that the cryptocurrency will either be trading at its current level for a few more hours or experience its own sideways similar to Bitcoin’s.
ETH 2.0 Upgrade in July
Also worth noting is the Serenity upgrade scheduled for July this year. In a recent AMA session on Reddit, the development team in charge of the platform announced that they were expecting to launch this upgrade by July 30th. In the AMA, the team expressed their optimism that it will be done by the quoted date.
I’m hoping we can launch by July 30, 2020 (the 5th anniversary of Ethereum 1.0). I think it’s unlikely we will launch in Q1 or Q2 2020 especially if we want three clients to be production-ready for launch.
The upgrade is meant to implement the highly anticipated Proof-of-Stake (PoS) algorithm and to improve transaction speeds on the network.
Summing it Up
Spearheaded by Bitcoin, the cryptocurrency markets are attempting to erase losses from mid-March. As a result, Ethereum’s price might have a chance to keep pushing towards $200 based on technical analysis on the 6hour chart. Additionally, the fundamentals with respect to the news of Serenity being implemented in July will provide additional momentum up for ETH. As with all analysis, the reader is advised to safeguard their ETH/USD position using adequate stop losses.
(Feature image courtesy of Clifford Photography on Unsplash.com.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
