Ethereum (CRYPTO: ETH) It traded about 2% higher on Friday in a steady bounce back since it fell nearly 24% between Jan 5 and Jan 12 when the crypto bottomed at $2,928.69.
The cryptocurrency sector has been in a long-term downtrend since November 10 when Ethereum and Bitcoin (CRYPTO: BTC) reached all-time highs of $4,867.81 and $69,000, respectively, indicating that the bears are currently in control of the major cryptocurrencies.
In the news: employment Thursday, Co-create Ethereum Vitalik Buterin 3.1 million followers on Twitter asked: “Survey about the Ethereum community. You wake up in 2035, 80% of all transactions + savings in the world are in a single currency that isn’t ETH. What would you like it to be?”
From my opinion, Cardano (CRYPTO: ADA) won with 42% of the vote while BNB (CRYPTO: BNB) He was the first choice in the second poll with 41.2% of the vote.
Although the year 2035 is a long way off, Ethereum’s competitors have advanced in their race to dominate the new NFT and DeFi spaces they currently dominate: Ethereum has 147.5 billion of total value locked or 62.06% in terms of DeFi and hosting some of the most popular and valuable NFT projects Such as CryptoPunks, Art Blocks, Bored Ape Yacht Club and Mutant Ape Yacht Club.
Ethereum is trading within two patterns, which may reward bulls or bears, depending on which pattern is executed over the upcoming trading days. The patterns may also make both groups of traders nervous to enter a position so that technical analysis can determine which pattern will be recognized.
SEE ALSO: Bitcoin, Ethereum Rebound Losing Strength But No Stop Dogecoin: Shall We Hurt Head First in Altcoin Season?
Ethereum chart: Bullish traders can note that Ethereum has reversed in an uptrend forming a consistent series of higher highs and higher lows on the daily chart. The latest high was recorded on Friday at $3,188.34 and the latest high was created on Wednesday at $3420.08.
- In order for the uptrend to be nullified, Ethereum would need to close the 24-hour trading session without the slightest of another high.
- Bearish traders may be looking for a potential bearish flag to be identified, as the bar formed between January 5th and January 8th and the flag formed over the following days. If the bear flag pattern is recognized, the measured move is 21% and when subtracted from the high price of the flag, it indicates that Ethereum could drop towards the $2,680 mark.
- For the bear flag to be invalidated, Ethereum will need to rise above the eight-day exponential moving average, which will also cause the cryptocurrency to print a higher high.
- Daily volume on Ethereum, which comes in at a well below average price on Friday, indicates that the cryptocurrency is in a period of consolidation and does not give any hint as to what pattern to implement.
- There is a higher resistance at $3,415.52 and $3,610.91 and support below at $3,240.01 and $3,057.82.
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