Ethereum broke past its long term resistance at $198 today. The top 10 cryptocurrencies such as BTCUSD, LTCUSD, Bitcoin Cash (BCH), XRPUSD, XTZ, etc., all of them broke their respective resistance levels.
Ethereum was struggling below the $198 level for quite some time. Over the past few weeks, ETH retested this level. However, it did not succeed in breaking it. Today, with Gilead announcing the successful trial of a vaccine against the COVID-19 virus, financial markets reached a euphoria of sorts.
Technical analysis of ETHUSD
Let’s take a look at the ETHUSD hourly timeframe. Source: TradingView.com
- ETH is currently trading at $209.89. From the technical charts, it can be seen that volume spiked spectacularly.
- The RSI is touching the 80-mark of the 20,80 RSI scale. ETHUSD is going strong even after reaching the overbought territory. It seems investors are not with the intent of profit booking.
- It shows that the sentiment is such that they expect the prices to go higher.
- On a short term point of view, the red candles are forming lower lows. It is a bullish signal.
Is this upswing of ETHUSD here to stay?
The upward momentum of Ethereum, Bitcoin, and other cryptos came on the back of the rising equity markets today. Most cryptocurrencies indeed turned bullish in the short term. However, it cannot be said that these cryptos are indeed bullish in the long term.
Since the equity markets are lately rising the wave of emotions going around, all it might take for the markets to come crashing down is a shred of bad news. And since the cryptocurrencies are riding the same wave, it might be a matter of time before they start spiraling down.
