Like most top ten digital currencies, Ethereum’s prices are steadily recovering. The virtual currency is up by 12% in the last week. Plus the change of stance from the SEC will likely result in more better days for Ether. Casper FFG is currently live at GitHub to provide broader scrutiny which indicates that there is a push behind the scenes to cement Ethereum’s position as the go-to platform for smart contracts and DApps.
Ethereum Technical Analysis
Ethereum’s 12% increase in the last week has seen it outpace Bitcoin. In the daily chart, Ether prices were up by 3% in 24 hours. We can see a stochastic buy signal In the weekly chart turning from below the oversold area. ETH was up by 90% in that time frame after a rebound off 2017’s resistance lines at 350 USD which is close to the 78.6% Fibonacci retracement line thus Ether is deeply oversold. Currently, there’s a retest of the previous support, at 800 USD. Going forward, we should look for buying options in lower times.
According to the 4HR chart, ETH bulls are picking resistance levels at 700 USD. Note that even though it isn’t perfect, a stochastic buy sign is in progress. Now, the reason why we are going to be recommending longs is that of the sequence of events during the last 24 hours in Ether trades. Take note of the higher highs concerning, the lower BB as well as the bullish engulfing candlestick beginning from 700 USD; this is significant because it is in collaboration with the general feeling in the weekly chart along with the widespread rejection of lesser lows just like it was on May 7.
The shift of momentum is going on at the 61.8% Fibonacci retracement level meaning that it is anchoring to last week’s high low. Hence, purchasing with stops below 700 USD can be an excellent strategy moving forward.