Digital Currency Revolution Series: Ethereum’s Bullish Portrayal On Both Fundamental And Technical Drivers

Ethereum (ETHUSD) minor trend forms the sloping channel (refer daily chart), the swings, at this juncture hover between 21-DMAs & channel resistance, more rallies likely only on breakout above.

While on major trend, the stern bullish engulfing candles take-off rallies about 340% in this year so far (refer weekly chart), shooting star counters, 21-EMAs caps current uptrend.

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

Thereby, ether seems to have been wedged underneath its near-term resistance level at $190 - $195 levels for over a month or two, and has hinted few indications of gaining upside traction and healthy buying momentum that will enable the pair to decisively propel past this level.

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.” 

Very recently, IT giant, Microsoft released more information about its “secret platform” that will mint Ethereum based tokens. The report, released by Forbes, stated that the IT pioneer is currently going through in the preview and testing phases of the Azure Blockchain tokens, keeping us to be baffled as to how this would affect ETH price. At this juncture, ETH edged higher a bit but further rallies needs better technical clarity.

We advocate buying ETHUSD at current levels for the upside targets of 255 levels, but maintain strict stop at 150.70 levels (spot reference: 184.20). One can also use unregulated ETH Futures of mid-month tenors offered by some renowned crypto-exchanges, such as, Huobi, Bitmex and CoinFlex.