Ethereum may retrace in the coming days even if it is trading 50% lower than its all-time high.
Over the past 24 hours, Ether has gone down by 3% after it failed to go higher than $900 last week. Taking shorts may be the right strategy following these lower lows.
The founder of deVere, Nigel Green predicted that Ether would get to $2,500 by the end of the year. This came as a surprise to those who believed that Ethereum had reached its end. Irrespective of Ethereum’s scaling difficulties and Crypto Kitties, the Ethereum blockchain remains the number one option for startups that intend to explore the potentials of smart contracts.
Ethereum is the leading network for smart contracts and developers are working tirelessly to fix Ethereum’s scalability issues with the upcoming Sharding and Casper protocols.
Technical Analysis for Ethereum
After the bullish bounce from the $350 support level, Ether has experienced a series of higher highs. Even if the market still looks bearish, Ether buyers are trying to boost the price above $850 which is the immediate resistance line.
Before now, buyers were expected to push and close above $900, but as the price-volume relationship changes, sellers are looking at every high for shorting opportunities.
If buyers want to prove that they are in charge, they need to breach $850. If not, a break lower than $600 will attract the bears once more and reverse the April gains.
Daily Technical Analysis for Ethereum
The bears seem to be in charge in the daily chart. There have been waves of lower lows following higher highs since after the bullish break of $1350 which it had in the first week of January.
On the 6th of May, there was selling pressure with volumes spiking up to about 243k high compared to the previous day of 193k.
Sellers have been consistent since then even with the retest attempts. The market might experience lower lows in the next few trading sessions.