The queen of cryptocurrency Ethereum ETH is often seen following the king Bitcoin and the Ethereum price trend in the past week is another telltale of the same phenomena. This is tantamount to the fact that despite new tokens emerging in the market such as the recent spike in YFI price, Bitcoin and Ethereum remain to be the industry leaders owing to the sheer market cap the two giants have acquired. The king Bitcoin has a market cap of 188.513B and the queen Ethereum stands at 38.746B, explaining the sheer magnitude of Bitcoin’s price movement effect on the market.
Visible in the chart above, – black line represents Ethereum and blue line represents Bitcoin – despite the price action differences in percentage the queen is following Bitcoin for past three months. While Ethereum has been gearing up to move onto the Ethereum 2.0 proof of stake concept for the better part of the year 2020, it appears that COVID-19 pandemic has slowed down the progress along with the global economic market.
Ethereum price movement: What to expect?
Analyst on Trading View MduChow explains that on the 4-hour plan Ethereum price is likely to take a hike based on the Bollinger band movement as explained by the Murdox platform official account. However, the trend is likely to depend on the Bitcoin price and the overall cryptocurrency market movement. Chow believes that the Ethereum price is likely to take a hike towards $370 – $380 before taking another fall down towards the $240-250 range.
Furthermore, the official Mudrex account also believes that the price is going to take a hike today i.e. “see a slight uptrend as the Bollinger band squeeze takes place with the price reaching the midline. Most of the Oscillator indicators are neutral.”
On the other hand, the major analysis comes from trading analyst Vince Prince who explains that the cryptocurrency queen is bound to take a downward trend based on the broadening wedge movement. Prince explains that the cryptocurrency is sustaining the current price based on the newfound support which is likely to budge anytime giving way to another bearish trend. While Bitcoin has managed to find some reversal support, Ethereum price is still heavily under the bears and likely to give way to the downtrend, albeit, after seeing a slight uptrend towards the $375 mark.
Prince furthers that the 100-EMA would be the line to watch as Ethereum price moves forward in the current trend and the moment the support budges Ethereum is likely to fall below the $300 mark and possibly to the $250 mark. At the time of writing, market sentiment for Ethereum is hovering at neutral but slightly leaning towards the sell zone. It appears that where day traders may be able to enjoy some level of comfort in the current price zone, extremely cautious movement is an absolute must to stay safe from long term losses.
Disclaimer: The information provided is not trading advice but an informative analysis of the price movement. Cryptopolitan.com holds no liability towards any investments based on the information provided on this page.