For investors watching Ethereum price‘s movements, raising above 325 USD was an important level that Ethereum price needed to reclaim. Today, the price rose to reach as high as 343 USD. The question now is will the price hold above this level to stay within the up trending channel?
Ethereum price needs to hold above $325 to remain in the ascending channel. The possibility of a pull back is very likely with the risk of dropping Ethereum price to the next support levels. The strong support levels remain 250 and 200 USD. There is also a previous resistance at 280 that could act as a support as well.
Ethereum is not the only Cryptocurrency that saw an increase in price today. Litecoin has seen an increase from 74 USD to a high of 82 USD. Bitcoin had an intraday low of 4440 USD and a high of 4650 USD. So overall the major cryptocurrencies are recovering after the long weekend and spectacular drops around 30%.
This is where we like to remind our readers of the importance of defining our timeframes even more when trading cryptocurrencies. With such volatility, one needs to define how much price swings they are willing to tolerate before engaging in a trade or investing in these. Same goes for investors, money management skills specifically risk management skills are important to survive the high volatility.
This is especially true when considering the particularities of the Cryptocurrencies market: The Cryptocurrencies are relatively new, there is always a new comer with “disruption potential”, there is a lot of fear and greed among investors, governments are currently figuring out what they want or do not want to do with this market and its digital currencies. All of these particularities are resulting in many catalysts that could swing the market both ways.
For these reasons, defining risk prior to initiating a trade or an investment and having the patience to wait for the proper entry levels are key to succeed in this market. In fact having a decent entry price is the best hedge against volatility. For that is the only way to be able to sit back and watch your investment gain value. You can find more useful tips to trade cryptocurrencies in the following article by InvestingHaven.
To conclude, the 325 USD level needs to hold to confirm that Ethereum’s price is back in the ascending channel and continue on an uptrend that can be further fueled by the many expected positive catalysts related to the upcoming code and features upgrades. A drop below 325 USD might send Ethereum’s price to 250 USD and we might see it on a sideways price action between $250 and $325 till the next significant volume inflow.