After Constantinople’s fall, Ethereum price appears set to dip below $100 and possibly return back to the $80s. Will the rescheduled Constantinople upgrade pump ETH again?
Let’s rewind back to January 16, yes the long-awaited arrival of Ethereum’s Constantinople upgrade. Up to that point, Ethereum had staged a fantastic rally from $83 to $163 and salivating traders had their eyes set eagerly set on a retest of $200 to $225. Then, as is usual for crypto, a vulnerability was found and the whole rally crumbled from the $150s to $130s to $115 to $106 to…
You get it.
Yesterday Ethereum (ETH) 00 tested $101 and it appears set to drop below $100 as the wider cryptocurrency market has few buyers and just a few sellers left. Barring some strong upside move from Bitcoin or a reinvigoration brought about by Ethereum’s rescheduled Constantinople upgrade on February 27, it seems likely that ETH has a bit further to fall.
As shown by the 4-hour chart, ETH topped out near $110 and the VPVR shows limited demand in the zone below $100. Strong purchasing interest is unlikely to show until $80 – $83 and there is the possibility of a bounce at $95 but this is not a guaranteed support or reversal point.
$110 is likely to function as resistance again and this point also aligns with the overhead arm of the descending channel. The ETH-USD shorts chart is also tightening as bears pile in on each ETH retest to form a new overhead resistance.
Generally, the market is shaky and Bitcoin’s uncertainty means any sharp price action could lead to whipsaw movements with Ethereum and other altcoins like Litecoin. Conservative traders will probably wait on the sidelines until ETH or BTC throw clearer signals.
More aggressive traders looking for a quick scalp might purchase at $103 with a stop at $101.50. A growing number of analysts are predicting Bitcoin to drop to or below $3,000 and if this occurs ETH is likely to drop to $74 so for the time being it’s clear that bears have the advantage.
Where do you think ETH will go over the next 48-hours?
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Images courtesy of Shutterstock, Trading View. Market data sourced from Bitfinex