Ethereum is currently in consolidation above $700 after touching an annual high of $747. Intraday, the price has come down around 0.2 percent, minuscule compared to the recent gains. The overbought technical indicators are now cooling down as bulls take a hiatus to end 2020 on a high note.
At the time of writing, the pair is trading at $721, near the 31-month high. The current pullback won’t worry bulls as the massive volume floor underneath the pair will support it for another bull run once 2021 kicks in. The technical indicators are lining up nicely to support further uptrend. The support at $700 will likely ward off any short-term pullback.
The current Ethereum price prediction resembles a pattern that has shaped the crypto industry in 2020. The bull run is followed by a relatively short consolidation period where bulls undertake accumulation to begin the next bull run. Meanwhile, the technical indicators cool down, and the price channels also mature along the way. This pattern has helped the pair achieve higher highs throughout 2020.
The current rising trend line is near $690 and is sloping upwards. Despite the overbought technical indicators, the price channel is trending upwards. ETH/USD buyers are booking short-term profits near $730 resistance only to accumulate at lower price levels near $710. The top at $747 will further entice some bears to book profits.
If the price breaks towards $700, the bulls will use the opportunity to drive another bull run. The May 2018 high of $830 will be the next target to achieve as the bulls gear up for another extended bull run in the new year.
The 4-hour chart of ETH/USD confirms the bullish Ethereum price prediction with a straightforward gaze. The price has broken past key resistance levels on the back of a massive volume surge. The May 2018 high of $835 is within sight, and the pair will likely challenge $985 resistance pretty soon. Long-term ETH bulls are probably targeting $1,000 on the daily charts.
The downside looks capped at $690 support and then at $677. If the sellers can increase the selling spree, the pair can see $650 support being breached. Worst case scenario can bring the pair towards $599, where the 50-day simple moving average lies.
The $747 high of 2020 also represents the pair’s 0.5 Fibonacci retracements going back to 2018. On a day-to-day basis, the Ethereum price prediction is very much in positive territory. The RSI at 60 has come down from its recent highs on the hourly charts giving Ethereum further room to rise. Also, MACD is climbing down a notch from the annual highs.
The 50-day ‘Exponential Moving Average’ is also converging near the $700 mark, making it all the most important. The 100-hour EMA further comes close to the $700 level. So, many technical and fundamental factors are providing crucial support to the optimistic Ethereum price prediction. The bulls will remain in control as long as the pair remains above the $700 support pivot.
The bulls need to push beyond $750 to help the pair climb above $750 resistance. As they gain traction, the buyer is likely to intensify as the bulls move further. Once achieved, ETH/USD is all poised to break above $800 as there is no significant resistance lined up ahead of $750.
Any extended pullback will have to go below $650 to make any considerable dent in the Ethereum price prediction. The pair is likely to test the 38.2 percent Fibonacci levels first. The MACD will enter a bearish crossover if the pair decides to test the 23.6 percent level of the Fibonacci retracement. So far, the pair is trading positively above the critical support levels on the hourly charts.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
This post was last modified on January 8, 2021 2:36 am
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