The current Ethereum trend is very much in line with Bitcoin as both the cryptocurrencies chart new heights in 2020. In the last week alone, the highly bullish Ethereum trend has resulted in a massive 13 percent rise in the cryptocurrency’s price to touch a new high of $478. The surpassing of $470 resistance marks a crucial point in the currency’s journey towards $500.
The past few days saw ETH/USD stall near the $450 mark. Now, it seems that the support zones were used for accumulation purposes by the bulls. Initially, the coin struggled to cross the $456 resistance. But a high-volume momentum by the bulls broke past the resistance at $462 to reach today’s high of $478.
Today, Ethereum is trading near the upper end of the rising price channel. The stretching Bollinger Bands are also helping the price rise further. Since the price has broken above the resistance of $475, the next level to touch is $490 and then ultimately $500. Strong fundamentals, along with a rising Bitcoin, may also play well for the ETH/USD pair.
Ethereum trend in the past 24 hours – New highs reflect bullish strength
As ETH/USD touches $478, the price is buoyed by the bullish undercurrent. The volumes are strong enough to carry the price past the $490 mark. The RSI is reaching an overbought level in the hourly charts, but there’s still a fair amount of room on the daily charts. The MACD is turning positive, meaning there might be steam left in the current rally.
The rising wedge pattern may give bulls some resistance on the road ahead. The next technical level of $488 can be a turning point in profit booking intensifies. If bears increase the selling pressure, a drop towards $450 is possible. The moving averages are in an upslope, indicating some bearish action may happen on the hourly timeframes.
Will Ethereum touch $700 next?
The weekly chart analysis sheds light on the long-term bullish Ethereum trend. Despite a dull few days, the Ethereum trend has picked up the pace to cross some crucial resistances. Today, it broke past $462, where the pair was stuck for a few days recently. Compared to March lows, the currency has gained more than 400 percent and in line with significant crypto peers.
Ethereum analysts are confident that the pair is on route to touch even greater heights. The Ethereum trend remains in a highly bullish territory even though technical indicators are approaching oversold territory on the hourly charts.
The upcoming ETH 2.0 is the real reason why the whole ETH ecosystem is euphoric. The event is scheduled for December 1, and traders are looking forward to wild price movements before the launch. ETH 2.0 is the most significant upgrade to the ETH network. The move towards ‘Proof-of-Stake’ will bring significant performance, speed, and efficiency improvements.
The current Spadina update will give way to Zinken before the final launch. The extensive testing gives the community a fair amount of insights about the actual impact of the ETH 2.0 upgrade. Investors and traders believe that the bullish Ethereum trend will continue as the launch comes closer.
Long term picture is bullish – ETH/USD charts paint a rosy picture
Short-term or hourly charts can be misleading. For example, hourly timeframes can paint a stagnant or zig-zag price movement. The weekly or daily charts give a clear indication of the long-term trend. And Ethereum trend is very much in the positive territory, as suggested by the last week’s price surge. As per IntoTheBlock, approximately 75 percent of ETH addresses are now profitable.
On the weekly chart, ETH/USD has been on a consistent rise since March. The pair recovered remarkably well from the $90 low posted in March to touch a high of $489. In August, the price stayed above crucial resistances and crossed $363. Overall, the price managed to stay near the upper end of the rising price channel. It is ranging near the 38.2 percent Fibonacci retracement.
A consistent bullish momentum can help the pair cross 38.2 percent Fibonacci retracement to chart a new trajectory towards $700. Interestingly, $700 marks the 50 percent Fibonacci retracement of the daily ETH/USD chart.
Compared to Bitcoin, the pair is more or less stagnant. The 200-day EMA provides support, and the pair is trying to break past the 0.0295 BTC for the past many days. Repeated failures create a question mark over ETH/BTC’s ability to cross 0.03 BTC in the near term. The coin is bouncing between the range of 0.0284 BTC and 0.03 BTC.
Bearish Ethereum trend scenario – Is $500 a pipe dream?
Traders and investors are betting on a bullish Ethereum trend based on overall market sentiment. However, one should take into account the events of 2017 to understand today’s euphoria. Apart from exchange data, derivatives market data also helps give a clear insight into the probable Ethereum trend.
At present, Bitcoin options are relatively muted but marching towards overheated levels. The December call options stand at $70,000. Compared to BTC, the Ether options for December 2020 are trading near $1,120. Such a price is highly bullish, especially when you take into account the 42 days expiry period. The upside can only be justified if the ETH 2.0 launch goes as planned and traders are long ETH. The bullish rally of the past few days does reflect the bullish mindset of traders, but the options picture must not be ignored.
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