- ETH/USD is capped by $230 resistance.
- Thomas Lee says Ethereum is well positioned for a big rally.
Ethereum, the second largest coin by market value, is trading at $229 amid recovery attempt from September 25 low at $203.33. Ethereum’s current market value is $23.5B, while the average daily trading volume is registered at $2.1B, which is higher than mid-term average figures. Both trading volumes and volatility peaked late on Thursday and has been subdued since that time.
What’s behind the move
A big cryptocurrency fan Thomas Lee, head of research at Fundstrat Global Advisors. thinks that Ethereum might experience a strong growth in the nearest future as a part of long overdue recovery from multi-month lows. The second most popular digital asset under-performed other top coins by two standard deviations having lost nearly 50% of its value in the recent six months. Historically, this technical setup preceded a strong recovery.
“Ethereum is about to stage a trend reversal and rally strongly. Sentiment is currently overly negative,” he expert explained.
Lee expects that ETH will cost $1,900 by the end of the year.
Ethereum’s technical picture
From the intraday perspective, ETH/USD recovery is capped by $230 handle enhanced by previously broken upside trendline and closely followed by 50.0% Fibo retracement for the downside movement from September 1 high and SMA200 4-hour. A sustainable move higher will signal that the recovery is gaining traction with the next aim at $250.00.
On the downside, the significant support is created by SMA100 (4-hour) at $215.75, followed by critical $200. The coin has been trading above this level since September 19.
ETH/USD, 4-hour chart
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