At the point of writing this post, ETH is hanging on to the 200d SMA (orange line in the chart below). It has previously tested this level and is now testing it again.
In my earlier post, I mentioned that ETH seems to be retracing after hitting the 200d SMA resistance and is set to go to the $143 level. Chart from my previous post below.
A couple of days back we saw some weaknesses in ETH and it did go to the $148 level briefly. However, it quickly bounced back with a trough to peak move of about 18%! Below is the hourly chart for easier visualization.
Such move with a rather strong volume is quite bullish for ETH.
The significance of the 200d SMA for ETH
The 200d SMA is an interesting level for ETH as past times when ETH convincingly broke through this level, it led to a good pump. Below are some examples.
Of course there are also some "fake breakouts" as shown below,
However, one thing that got be really excited is that in all these prior breakouts above 200d SMA, none of them had tested it more than once before the breakout. Which is quite different from what we are looking at now. To find an example of when ETH tested the 200d SMA more than once before breaking above, I have to scroll all the way back to 2017.
And we all know what happened after that...
ETH pretty much did not look back after that and only broke below the 200d SMA after more than a year with a staggering 13,000% gain in between! In the chart above, I have to switch to log chart and to a weekly chart for you to see the move clearly.
And in the chart below, you can see that ETH did not go below the 200d SMA until Mar 2018, which is about 14 months later.
Conclusion
As you can see from the charts, the 200d SMA is a significant level for ETH. The ETH price is now hugging the 200d SMA as I am writing this post and is proving to be a tough resistance to crack. This has not been seen since 2017. If we draw some parallel from what happened in Jan 2017, I am expecting ETH to fail the test and fall back to the 21d SMA, around the $152-$155 level. Then it will try to test the 200d SMA level again.
All these price actions coupled with the upcoming BTC rewards halving makes the entire crypto market exciting to watch. It is probably not a coincidence to also see institution investors pricing so much premium for ETH.
Source
Either the investors failed their math class or they know something we don't...
As usual, all these are just my personal thought processes and analyses. It should not be used as financial advice and everyone should do their own due diligence and research when investing their own money.
This article is created on the Hive blockchain, an immutable and censorship-resistant content platform.
20% of post rewards goes to 
