ETH May Be On A Long-term Price Correction Rally As The Price Moves Above Significant Moving Averages

ETH has been soaring for some days now ever since it reclaimed the second position from XRP. Considering the condition of the token over the last few months, the price recovery is just what the community needs to verify that the world’s foremost smart contract platform isn’t going anywhere anytime soon. Within this month alone, Ethereum has increased by 37.77%.

Ethereum (ETH) Surges Against The USD

Bitcoin, Ethereum, and most of the top cryptocurrencies have been able to make significant upward price corrections against the USD. ETH has crossed over a significant long-term indicator around the 100-period moving average. This is a sign that a more significant trend change may be on the way. The price action became intense at around $140 – $149. This area was formally acting as support but it turned to resistance.

Ethereum (ETH) Price Today – BTC / USD

#NamePrice24H %
2
ethereum
Ethereum(ETH)
$144.17
0.789%

Yesterday, ETH closed above the 100-period moving average changing from bearish to bullish. The relative strength index was at 21. This shows that ETH may reach higher lows after a break from the long bearish wave. The growing volume has been increasing steadily for a while now. If the bulls are able to retain their hold on the market, the next target will be $160.62. This was initially rejected by the 200-day moving average.

At the time of writing, ETH was trading at $145.66. This shows that it is up by 0.30% against the USD and up by 0.51% against BTC. The 24 hour trading volume is $4,437,276,042 and the market capitalization is $15,286,783,718.

Why Is The Price Of ETH Rising?

While ETH is currently following the positive market trend, the upcoming Constantinople upgrade is another possible factor that may be affecting the price of ETH. Investors sentiments are currently positive and this is contributing to the bull run.

The Constantinople upgrade, which has been shifted twice, is finally going to take place this month. It is going to reduce block rewards from 3 ETH to 2 ETH. This will reduce the number of new tokens by at least one-third. The fork will happen when the block number reaches 7,280,000. This will most likely happen on the 27th of February.

Apart from the ETH Constantinople Fork, another possible catalyst responsible for the price surge may be the news from ErisX. The United States-based cryptocurrency exchange sent a letter to the CFTC with answers to questions that were posed by the regulatory body a while ago about Ethereum Futures. The exchange stated that there isn’t a strong infrastructure to support institutional investors. Part of the letter was as follows:

“There isn’t any post-trade technical, or institutional-grade infrastructure. There is a lack of operational capabilities, regulated operations, transparency, and secure custody options. There is also a lack of fragmented liquidity and ideal hedging options for financial intermediaries and commercial actors.”

The letter noted that institutional investors are not propelled to move money into the cryptocurrency industry because it lacks assurances and security from regulatory bodies. Others in the cryptocurrency community agreed with the content of the letter.

Do you think ETH will be able to maintain its bullish momentum against the USD long-term? Share your opinion in the comment section.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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