Digital Currency Revolution Series: Display of ETH/USD shooting star at channel resistance to offer better entry level

This year, ETHUSD (at Coinbase) has shown a resounding consolidation phase after bearish rout seen in 2018. 

Although the minor trend forms sloping channel, the rallies spike above DMAs upon stern bullish engulfing candle at 129.61 levels, ever since then the price has jumped more than 340% in 2019 so far.

Shooting star is traced out at 290.07 levels (on weekly chart), to counter this vigorous rally and hampers intermediate uptrend. Consequently, the bearish pattern nudge price back below EMAs.

The interim price dips, for now, takes support at 156-177 levels (21-DMAs).

The intermediate uptrend seems to be restrained below 21-EMAs. If bulls manage to break out these levels, we could foresee more upside traction up to 255 levels in next 2-3 months, or even up to 360 by first quarter of 2020. Hence, the recent price dips upon shooting star are perceived as the better entry level for fresh long build-ups for the long-term investors.

Fundamentally, we witness some constructive opinions flowing in favour of ether, the new Chair of the CFTC (Commodity Futures Trading Commission) has recently said that Ether (ETH) is a commodity – hinting the room for a plethora of newly regulated derivatives products on platforms like the CBOE. There have been news of ETHUSD Futures.

CFTC Chairman Heath Tarbert, at Yahoo Finance’s All Markets Summit in New York, said “it is my view as chairman of the CFTC that ether is a commodity.”