Ethereum is gearing up: road to $400 is clear for $ETH

15 May, 2019
by Lourens Pepler
Price Analysis
Ethereum is gearing up: road to $400 is clear for $ETH

Binance will open its gates soon and many traders are patiently waiting to get their hands on cheap altcoins. Bitcoin seems to have found resistance at 8.4k and is starting to move sideways. One of the most interesting setups is Ethereum, what can $ETH do?

Highlights

- Binance to reopen trading soon

- ETH already above resistance levels

- A clear road ahead to $400, or will $300 prove as resistance

- Is a retrace possible?

ETH is now trading above $220, which was a similiar resistance zone as $6k was to Bitcoin. On the daily we have turned the $220 resistance level into support since we are already at $230. If we look at RSI we can see that it points upwards above 70, indicating strong bullish action ahead. Usually, we see large buy volume enter the market when the RSI is above 70. That along with RSI trading above 50 for more than 90 days confirms that ETH is in a bullrun.

Ahead of us we have some minor resistance around $300, but since BTC was able to break through many resistance levels without a problem we will assume that its ETH (the 2nd biggest cryptocurrency) can follow the same path and ignore minor resitance levels. After $300 we have a clear road ahead to $400. With momentum still strong on the higher time frames we can assume a nice price increase is on the way.

ETH/USD chart provided by Tradingview

Will we rest at $220?
Zooming into a smaller the first thing we notice is that we have good volume this past few days. As we know Rising price with rising volume is a good sign of interest and most of the time indicates bullish action ahead. Although there are some signs of Diverenge, higher highs on price and lower highs on RSI, it is still too early to look for bearish signs. A small retrace is very much possible, but with all the bullishness flowing around and with people eager to start trading again when Binance open leads us to think that we will see some nice action on altcoins today. And since ETH is still relatively low compared to its highs we can be sure to expect a rise in price. 

ETH/USD chart provided by Tradingview

Is a retrace even possible?
If we look take a look at the 15min for a possible entry incase we get a retrace I would aim for anything close to $210 or even when price reaches the 200EMA. There is a good chance that we won't see a retrace untill we reach higher levels. 

ETH/USD chart provided by Tradingview

Is alt season on the way or does Bitcoin have more in store for us? Let us know what you think in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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