Ethereum’s (ETH) price is experiencing a pullback towards the $1,103 support level as a result of Bitcoin’s recent dip. But is the second-largest cryptocurrency by market cap a good buy at the moment?
Fundamental analysis: whales buying discounted Ether
Ethereum’s current fundamental outlook is considered as fairly bullish, especially with more analysts coming out with multi-thousand dollar price projections. On top of that, Ethereum’s use as a platform has expanded greatly, and new well thought out projects are coming out to the public more often than before.
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Recent analyses have shown that, as long as Ether stays above the $908mark, the cryptocurrency will remain bullish. Additionally, institutional investors and ETH “whales” are taking price corrections such as the most recent one to accumulate more Ether at a discounted price.
ETH managed to lost 8.33% week-over-week. BTC scored a loss of 6.40% in the same period, slightly outperforming ETH in the past week. At the time of writing, ETH is trading for $1,153, representing a price increase of 83.58% when compared to the previous month’s value. Ethereum is the second-largest cryptocurrency by market cap, with a current total market value of $130.2 billion.
ETH/USD technical analysis: Ethereum’s downside is well-guarded
Ethereum (ETH) has managed to find strong resistance in the $908 support level and the 21-day exponential moving average, which prompted another leg up caused by the bulls buying ETH at a discount. The past 24 hours, however, were not so bullish as Bitcoin managed to retrace below $36,000 and pull Ether with it.
ETH in currently in a very tight area, bounded by the 23.6% Fib retracement of $1,103 to the downside and $1,250 to the upside. Extended moves to the upside will bring the $1,350 level into play, while an extended move to the downside will have to contest the 21-day moving average as well as the $955 level.
Ethereum’s RSI on the daily time-frame was deep into the overbought territory for quite some time, but retreated from it during the crypto market pullback. Its RSI currently on the verge of entering overbought territory again, with a current value of 63.75.
ETH’s hourly time-frame shows us how the cryptocurrency entered a retracement mode after failing to push above $1,250 with confidence. The price descent was quick and strong, and even brought ETH’s price to a low of $1,065. However, bulls managed to pick up the price and keep the 23.6% Fib retracement level relevant. Ethereum has a tough job of breaking the $1,250 level in the short term. However, if it manages to do it, we may see a quick rise in price and a contestation of the $1,350 level.