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Ethereum Holds Levels and Trend as Medalla Testnet Approaches

Long
BITSTAMP:ETHUSD   Ethereum / U.S. Dollar
Etheruem had a sharp pullback over the weekend, but a look at the chart shows little technical damage was done. The bullish trend appears to remain intact less than a day before the much-awaited Medalla testnet begins.

Today we’ll look at the monthly and hourly charts.

First, the monthly shows an important price area between $358. 40 (low of April 2018) and $363.18 (high of June 2019). Saturday’s big rip around 4pm ET was essentially a breakout through this zone.


Looking at the hourly chart, we can see that prices tested this zone but quickly held above it. That was one sign of bullish continuation.

Another was in the bounce at the 50-hour simple moving average ( SMA ). This was a faster-moving line than the 100-hour SMA where it bounced three days before.

Finally, for a sense of ETHUSD’s potential direction, traders may want to take some cues from the recent move in silver . Both were trapped below long-term resistance lines. Silver made a sharp move, partially because it had few long-term holders to become short-term sellers. ETHUSD may be in a similar position now. Like silver (versus gold ), ETHUSD is also gaining in its ratio vs. Bitcoin .

As a result, the No. 2 crypto may surprise to the upside. It could be worth watching with testing of the Ethereum 2.0 upgrade (Medalla testnet) starting tomorrow.

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