• Ethereum (ETH) has experienced a slow February after its January rally.
• Technical indicators display mixed results, making it difficult to predict whether ETH will experience a rally or decline.
• If the bulls are able to drive the price above $1,680, ETH could rally to $1,800 or even higher; if not, the price may drop to $1,500 or lower.
Ethereum’s February Outlook
After a strong rally in January, Ethereum is seemingly taking a break in extreme price action in February. The question remains: will ETH continue its upward momentum while Bitcoin stabilizes in the short term? This article examines the current indicators and possible outcomes for ETH’s price movement.
At the time of writing, Ethereum is trading close to the $1,680 resistance level. The 20-day exponential moving average (EMA) stands at $1,586 and is exhibiting an upward trend which favors buyers. However, the relative strength index (RSI) shows negative divergence which suggests that bulls may be losing their grip on ETH. To maintain control they need to push prices above $1,680.
If successful in pushing prices beyond the resistance level at $1,680 then Ethereum could witness a rally up to as high as $1,800 or even higher until it reaches another resistance level at $2,000. Conversely if prices fall below the 20-day EMA then there is potential forETH to tumble down to crucial support levels around $1,,500 and eventually reaching potentially reaching as low as $1352 should that support be broken too.
Four Hour Chart Analysis
On the four-hour chart bears have pushed prices belowthe 20-EMA which could suggest a retreat for buyers present within this market space. There is limited support at 50-simple moving average (SMA) with further confirmation from other technical indicators needed in order for this hypothesis to hold true however with most signs currently pointing bearish it would be wise for traders to exercise caution when engaging with this asset class over this timescale period .
Overall it appears Ethereum has experienced a slow start during February however with mixed technical indicators on either side of the argument making predictions difficult it looks like investors should keep an eye out on how these indicators move over coming days/weeks before investing any capital into this asset class .