Ethereum price prediction for January 2020 [Technical Analysis]

Written by: Michael Harris
April 3, 2020
  • UK’s oldest exchange to delist Ethereum and focus only on Bitcoin
  • Ethereum to implement additional upgrade, dubbed Muir Glacier
  • Ethereum price rebounds from the new 10-month low

Ethereum Foundation has announced plans for an additional network upgrade, scheduled for the first day of the new year. In the meantime, the price action has rebounded from the fresh 10-month low. 

Ethereum fundamentals

Coinfloor, the UK’s longest-running cryptocurrency exchange, plans to delist Ethereum due to “unclear future of hard forks”, the exchange announced

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Established in early 2013, Coinfloor also plans to delist Bitcoin Cash (BCH). As of January 3rd, the London-based exchange will offer only Bitcoin. It was said in the statement:

“The decision will allow Coinfloor to provide a richer set of services for the world’s leading cryptocurrency while maintaining focus on simplicity. Over the short-term, the business’s aim is to strengthen its position as the UK’s number one Bitcoin exchange,”

Elsewhere, the Ethereum Foundation announced plans to undergo a new block upgrade on Wednesday, January 1st 2020, in addition to the already completed Ethereum Istanbul Hard Fork.

The plan is to activate the upgrade, dubbed Muir Glacier, at block number 9,200,000. Unlike Istanbul Hard Fork, which has implemented six out of 11 Ethereum Improvement Proposals (EIPs), Muir Glacier aims to implement only one improvement proposal – EIP 2384.

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ETH/USD technical analysis

Ethereum (ETH/USD) is trapped within a descending wedge as the price action continues to create lower highs and higher lows. As seen in the chart below, the price action tested the wedge support for the fourth time in the last three months, however, the bulls are still able to defend this level of support. 

ETH/USD daily chart (TradingView)

Last week, Ethereum printed a fresh 10-month low of $116.72, before the bulls were able to push the price higher and prevent a daily close below the $120 mark. The wedge support, now further supported by last week’s low, will continue to offer strong supply in the region of $116 – $122.

On the upside, the bulls are currently testing the horizontal resistance near the $135 mark. If broken, the major horizontal resistance at $155 is expected to play a significant role. The third layer of resistance is located around the $170 mark, where the confluence of the 100-DMA and the descending wedge resistance is located.