- Ethereum faces psychological resistance at $200
- The USD pair has some room to grow while BTC pair looks likely to drop in the short-term
Ethereum has been making crypto headlines as it recovered significantly against other popular cryptocurrencies.
ETH/USD has room to increase further. The altcoin peaked at $190 within the last two weeks. After seeing a 40% price increase this month, the pair still has some room to grow.
However, it is important to note that the ETH/USD pair relies on Bitcoin’s USD price. As a result, trading ETH/USD pair may not provide a significant upside compared to trading BTC/USD.
According to the relative-strength indicator (RSI), ETH/USD is still bullish as the RSI remains above 50.00. While the RSI is bullish, the already high RSI allows for little short-term growth before turning over-bought. Key RSI levels to watch for will be 71.30 (over-bought) and 22.65 (over-sold).
Furthermore, the MACD indicator still prints a bullish signal, however, Ethereum will need to breakout past the psychological resistance at $200 in order to maintain the bullish sentiment. With the 26-day EMA close to the 12-day EMA, Ethereum has to breakout soon or the MACD will print a bearish signal.
The ETH/BTC pair provides the real story. The BTC pair is up 30% since the beginning of April. As a result, the pair looks over-bought, with a short-term decrease likely.
The relative-strength indicator (RSI) peaked on April 19th, at 71.97. Since then the RSI has been declining holding between 60.00 and 65.00. Although, the RSI is still bullish, a continual decline will further the short-term bearish sentiment.
Furthermore, the MACD indicator is dangerously close to printing a bearish confirmation as the 26-day EMA comes close to crossing over the 12-day EMA. Without a breakout past the resistance at $200 soon, Ethereum will enter a bearish correction.
Content displayed on thecryptoassociate.com is not investment advice. Investors should do their own research before investing in digital assets or anything displayed on this site. The Crypto Associate does not recommend trading any sort of investment in cryptocurrencies and digital assets. The Crypto Associate is not responsible for any losses incurred due to the buying or selling of cryptocurrencies displayed on this site. All content is for informational purposes only. The Crypto Associate does not endorse, affiliate or repersent any third party links including advertisements.The Crypto Associate participates in affliate marketing. Read the full disclaimer