- Bullish Ethereum price prediction came true as the week ends
- ETH/USD is on a new-found high and prints a fresh annual high of $581
- Ethereum price rise comes after altcoins rallied post fresh BTC highs
- Overbought technical indicators pointing towards short-term correction
Ethereum price prediction follows broader altcoin rally to touch $581
Ethereum has used the weekend’s thin liquidity to break through critical resistances to fresh new highs for 2020. The ETH/USD pair has risen sharply past the crucial $550 resistance to the $581 high. Since then, the pair has cooled off, and the price now trades well within Bollinger Bands. The sharp rise comes courtesy of the thin weekend liquidity, which the bulls exploited well.
Historically, it is well observed that Bitcoin rallies result in subsequent altcoin price rise. The most bullish Ethereum price prediction came true as the pair demolished successive resistances at $528 and $550. The largest altcoin has shown resilience towards overbought technical indicators and charted its bull run.
After touching the $581 high, the traders booked profits, resulting in a minor correction towards $548. However, the large green candles on the hourly charts remind traders that ETH/USD is on a long-term bull run. Investors must expect aggressive buying at lower support levels.
Ethereum price movement in the last 24 hours – Massive buying spurs bull run
Bulls have shown that they still have the liquidity and volume to carry the uptrend further. After breaking out of the Bollinger Bands, the price has corrected near the bands’ upper end. The ETH/USD pair will undergo correction before resuming the rally, seeing the price touch a fresh annual high of $625 next.
Technical indicators are deep in the overbought zone. The upsloping moving averages are giving signs of exhaustion. Also, the RSI and MACD display overbought readings, which must tone down to resume the bull run organically.
On the other hand, bears must print an extended decline to dent the rally. The price must cross under $511 support to turn the tables around. Such a move can trigger massive profit booking resulting in subsequent sell orders and a break below the $488 support level. However, such a gigantic bearish move is unlikely in the face of a highly optimistic Ethereum price prediction.
ETH/USD 4-hour chart – Massive buying triggers breakout beyond $550
The 4-hour ETH/USD chart reflects the bullish Ethereum price prediction made by many crypto analysts. The bulls started accumulation near the $504 mark and continued to 20-day EMA. The stagnant zig-zag price action was a set up for the massive weekend bull run. The overhead resistance at $550 was taken out aggressively as the price broke out of Bollinger Bands.
Ethereum price prediction of $580 comes true after a hiatus of three years. As ETH price went past the $500 psychological level, the cryptocurrency demolished many minor resistances above to print new highs. Last week saw muted price action from Tuesday till Friday. Today’s 6 percent rise marks the altcoin’s resolve to stay in bullish price projections. As of November, Ethereum has outperformed Bitcoin as the altcoin gained 284 percent in 2020.
The meteoric rise from March lows
Ethereum has been on a meteoric journey from its March low of $117. The weekly and daily charts paint an almost parabolic rise for ETH/USD. In comparison, Bitcoin has gained around 155 percent year-to-date.
As the new alt season’ emerges in the crypto market, investors are looking for mature assets. Ethereum promises a reliable ecosystem that can deliver suitable returns. The upcoming ETH 2.0 launch is further boosting the bull run. The expected launch in the first week of December is fuelling the bullish Ethereum price prediction. Once the dust settles after the ETH 2.0 launch, analysts predict a fresh all-time high for ETH/USD by the end of 2021.
Ethereum price prediction conclusion – Bulls are firmly in the driving seat
The $600 level represents a significant resistance zone that can derail the price due to profit booking. Ethereum faced stiff resistance at $600 back in 2018 as well. In case an extended sell-off materializes, bears will start from the $547 pivot point and accelerate towards $480 support.
Next week holds the key to further rise in ETH/USD as weekly technical indicators are still deeply overbought. If the bulls maintain momentum, the price can increase towards the $700 level on the daily timeframe. Going further, there is not much in terms of resistance as the pair crosses the $900 level to recapture record highs.
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