Ethereum and the rest of the cryptocurrency market have seen a multitude of changes in their values over the past few weeks, causing the user base to scramble in confusion. A lack of a significant price increase of ETH even caused many scammers and fraudsters to be flushed out of the space, leaving only those dedicated to the industry. The Vitalik Buterin co-founded Ethereum was speculated to be the kingpin of the altcoin revolution and as of January 2, the second-largest cryptocurrency was showing no signs of a climb up.
In the hourly spectrum, ETH held an immediate resistance of $135.29 and immediate support of $127.8. The cryptocurrency was trading for $129.6 at press time and has been averaging at that range for two weeks.
The Parabolic SAR was above the price candles which meant that ETH was going through a bearish atmosphere.
The Relative Strength Index was near the oversold zone after a drop in price during the first day of the year. The hold near the lower zone was a sign that the ETH selling pressure was much more than the buying pressure.
The Chaikin Money Flow indicator had slightly crossed the zero line on January 2nd after a fall below it on the previous day. Experts claim that the rise could be attributed to an increased influx of capital into the Ethereum ecosystem.
Ethereum’s daily chart spoke a different story as the cryptocurrency struggled to break out of its long term rut. The immediate support on the daily chart was clocked at $121.92 while the cryptocurrency was trading for $129.5.
The Relative Strength Index on the daily spectrum showed similar characteristics to that of the hourly chart. Staying near the oversold zone, it was clear that the selling pressure was greater than the buying pressure.
The Chaikin Money Flow indicator was below the zero line, a hold that has sustained since the middle of December. In the long term, the capital leaving the Ethereum market has been much greater than the capital coming into it.
The Parabolic SAR was below the price candles, a contrast to the hourly chart. This was a sign that in the extended time frame, ETH was going through a bullish scenario.
The above-mentioned indicators clearly showed that Ethereum has a lot to do before it can trigger an altcoin revolution. Analysts predict that the second largest cryptocurrency has to break at least the $180 barrier before it can be considered as a legitimate candidate to trump Bitcoin.