Ethereum Fights Resistance at $160, Will the Bulls Give Up?
Recently, Ethereum (ETH) jumped a little by 2% as it bounced from support at about $155 to hit the current resistance at $160. Also, the cryptocurrency has failed to break over this resistance during the past five days of trading. This is a sign that the coin may soon roll over and head lower.
Meanwhile, if Ethereum can stay above $155, it would still have the chance to bounce back higher toward the $175 resistance level.
In the recent chart, ETH struggles to break above the resistance of $175 last week. This caused the cryptocurrency to roll over and fall. Then, it went on to drop to its support at $155 provided by a short term .236 Fibonacci Retracement level.
Ethereum has now been bouncing between $155 and $160 for the last five days of trading. And this was because it struggled to break out of this range.
ETH is still bullish in the short term. However, a break beneath the support at the .236 Fibonacci Retracement level would change it to neutral. Also, it would require it to dip further lower and break beneath the rising support trend line to turn bearish.
Now, in case the bulls manage to break the resistance at $160, people can expect an immediate higher resistance at $176, provided by a 1.414 Fib Extension level. With this, resistance is located at $180, $187 (1.618 Fib Extension), $191 (bearish .618 Fib Retracement), and $200.
Aside from that, the first level of solid support lies at $155. Then, there will be support at the rising support trend line. And beneath the trend line, support might be expected at $142 (.382 Fib Retracement), $132 (.5 Fib Retracement), and $122 (.618 Fib Retracement).
Libra Stablecoin
John Vaz, an economist and academic, thinks Bitcoin (BTC) still experiences stiff competition from Facebook’s troubled Libra project.
Vaz stated that BTC has scaling difficulties in terms of payments and was used disproportionately as a vehicle for speculation. On the other hand, he explained that Libra has been purpose-built to scale as a payments network. It could suddenly emerge as a major competitor despite its current issues with regulators.
The economist insisted that Libra is not dead. And it is navigating the regulatory nightmare.
However, Vaz dismissed central bank digital currencies (CBDCs), painting them as a weak defensive posture in response to the threat crypto assets posed to their control over money supply and credit.
“The biggest competition for Bitcoin comes from other cryptocurrencies,” Vaz noted.
After noting that Facebook suffers from problems of public mistrust, Caz explained that the proposed model for the Libra stablecoin was fascinating. He highlighted that both the basket of assets underpinning the stability of the instrument and the existing networks that large tech firms can tap into.
Vaz argues that firms like Facebook must capitalize on their existing user base. He also said that financial transactions were already taking place.
In addition to that, the economist noted that Libra would launch with a massive domain possibility, perhaps more than any other cryptocurrency in their day of launch.
