- A bullish golden cross has formed on the daily ETH/USD chart.
- The golden cross plus the buzz around ETH2.0 could assist Ethereum in breaking the $228 resistance level.
- Speculation on VISA using the Ethereum network to launch its Digital fiat currency might further boost ETH in the crypto markets.
The weekend is once again upon us and the general crypto trade volume has once again declined. This is a pattern that many savvy crypto traders have come to accept as fact when analyzing their favorite charts for weekend trading. In the case of Ethereum (ETH), the trade volume has decreased a bit but there is a sense of optimism ahead as shall be elaborated below.
Golden Cross on the Daily ETH/USDT
When we look at the 1-Day ETH/USDT chart courtesy of Tradingview.com, we realize that a Golden Cross has formed. This happens when the 50-day (white) Moving Average crosses the 200-day (green) Moving Average from the downside. The screenshot below gives a better visual cue of the situation on the ETH/USDT chart.
Further analyzing the chart, we observe the following:
- The 100 Day moving average (yellow) is providing adequate support for ETH at around $192.
- This value is close to the 0.236 Fibonacci retracement level of $195 also providing some support.
- As earlier noted in a previous analysis, the 200-day moving average (green) is a crucial level to watch for Ethereum ahead of ETH2.0.
- The 200-day moving average provides support at around $174.
- Other potential zones of support are at $158 and $141.
- Trade volume is in the green with the MACD exhibiting potential for sideways movement.
- Resistances are at $206, $211, $215, $219 and $228.
$228 Resistance for Ethereum
The last-mentioned resistance zone of $228 is the area proving to be difficult for Ethereum ahead of the ETH2.0 launch in July. The Golden Cross on the daily chart might just provide the necessary bullish momentum for Ethereum to break this level before the launch in Q3 of 2020.
Additionally, the speculation that VISA might use Ethereum as the choice blockchain network for its digital fiat currency might provide additional bullish momentum for ETH in the coming days and/or weeks.
As with all Technical analyses, investors and traders are advised to institute risk management techniques such as stop losses.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.