Ethereum (ETH) Price Analysis – February 18

  • The ETH price faces resistance at the $160 price level.
  • The ETH price is in a strong bullish momentum in the short and medium-term trend.
  • The crypto's price is expected to reach the highs of $160 and $200  but may face resistance at the $160 price level.

Ethereum, ETHUSDEthereum Chart By Trading View

ETHUSD Medium-term Trend: Bullish

  • Resistance Levels: $230, $240, $250
  • Support Levels: $130, $120, $110   

Last week, the price of Ethereum was ranging above the $120 price level. On February 8, the bulls broke the 12-day EMA, the 26-day EMA and the crypto's price reached a high of $127.37. The bulls have succeeded in breaking the $130 resistance level which was unbroken since January 10. Today, the ETH price has commenced a series of higher highs and higher lows.

The crypto's price is trading at $145.54 as at the time of writing. On the upside, the crypto's price is expected to reach the highs of $160 and $200 price levels but may face resistance at the $160 price level. The ETH price should be sustained above the EMAs and the bulls break the $160  resistance level. Meanwhile, the stochastic band is in the overbought region but above the 80% range which indicates that the price is in a strong bullish momentum and a buy signal.

ETHUSD Short-term Trend: Ranging 

Ethereum, ETHUSDEthereum Chart By Trading View

On the 4-hour chart, the price of Ethereum is in a sideways trend. The 12-day EMA and the 26-day EMA were trending horizontally as the crypto's price was range bound above the $120 price level. Today, the price of Ethereum is in a smooth uptrend. The crypto's price is making a series of higher highs and higher lows.

If the bulls sustained their momentum and break the $160 resistance level, the crypto will reach its previous high of $200.The stochastic is in the overbought region but above the 80% range which indicates that the price is in a strong bullish momentum and a buy signal.

 

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Electric Capital: 'Monetary and Fiscal Stimulus Is Hastening' Crypto Adoption

  • Early stage crypto venture firm Electric Capital says government monetary and fiscal policies are expediting mainstream adoption for cryptocurrency. 
  • The firm highlighted a long term erosion in trust for fiat currencies coinciding with an increase in trust for cryptographic processes. 

Early stage crypto venture firm Electric Capital claims that recent monetary and fiscal stimulus has hastened bitcoin’s adoption. 

In an investor update, the firm argued governments around the world are hastening adoption for cryptocurrency with their unprecedented monetary and fiscal stimulus initiatives. 

The firm explained that bitcoin is emerging as a potential store of value versus the U.S. dollar. While some detractors say bitcoin’s short term correlation to U.S. equities has undercut its potential as a store of value asset, Electric Capital called this a “straw-man argument.”

The report reads, 

As we regularly state: Bitcoin is not a store of value today relative to USD. It is a potential store of value, as it has many (though not yet all) of the characteristics of an excellent store of value.

The report continued, highlighting bitcoin’s value as a hedge against inflation, fiat devaluation and government seizure. The firm also pointed to bitcoin’s proven track record as a store of value relative to distressed emerging market currencies, emphasizing its popularity in the hyperinflation zones of Latin America and Africa. 

The investor update claimed to be optimistic about bitcoin’s long-term potential as a store of value and argued recent market developments have increased the likelihood of bitcoin’s broader adoption. 

According to the report, government monetary and fiscal stimulus policies are trending towards a long term "collapse in trust" in existing financial markets and fiat currencies. Simultaneously, Electric Capital reports a long term trend increase in trust in cryptographic systems, on which a new store of value can be developed. 

The report reads, 

Trust in governments is at all time lows, a global recession looms, unemployment will hit historic highs, government debt-to-GDP is at all time highs, dollar denominated debt payments in emerging markets loom, and many are worried about the scale of government stimulus.

The investor update concluded by saying long term data suggests an increase in global concern over an unsustainable economic path, which may drive people and institutions to consider cryptocurrencies as an alternative. 

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