Price Analysis as Ethereum (ETH) Continues to Trade Sideways

Price Analysis as Ethereum (ETH) Continues to Trade Sideways

Ethereum (ETH) has continued to trade sideways this week as it struggles to entertain investors.

The third largest digital currency has been trading between $107 and $134 for almost two weeks now.

It has recently been announced that Consensys, a blockchain software technology company founded by Ethereum co-founder Joseph Lubin, has entered into a collaboration with New America, a public health graduate school of Harvard University.

The aim of the project is to store annual worker surveys on the blockchain-based platform. Speaking about the project, Lubin highlighted the role of Ethereum.

“Ethereum is a technology that reduces the barrier for trust between two parties and will create a transparent environment for workers to securely and anonymously share critical information. Our goal is to develop, test, and scale a system that could empower employees, suppliers, and consumers to make informed decisions about factories, products, and brands.”

On the other hand, the first major hack that has occurred so far in this year has targeted ETH. Apparently, around  $16 Million worth of digital assets have been stolen from the New Zealand-based crypto exchange Cryptopia. The picture below offers more details about the hacking exercise that took place last week.

Coming back to the ETH price analysis, the price action still targets the confluence of two important resistance zones – the horizontal resistance line (the red line), and the descending trend line connecting recent swing highs (the light blue line).

Graph 1. Ethereum (ETHUSD) daily chart

However, before the ETH eventually reaches this zone, which sits just below the $170 handle, it will be tested by the 100 daily moving average around the $145 mark.

On the downside, the long-term target of the bears is still the 161.8% Fibonacci extension, located at $60. During the December sell-off, the bears managed to push the price to the yearly low of $83, well short of the $60 target.

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