Skip to content

ETH at $ 300? Ethereum appears to be the next major cryptocurrency to follow Cardano

June 16, 2020

Several old coins have recently shown strength. Some good examples are Theta Token (THETA), Zilliqa (ZIL) and Elrond (ERD). However, large caps are far behind and back The only well-functioning large-cap currency was Cardano (ADA).

When alternative currencies with smaller market caps stand out, Some investors may be wondering exactly what is required to significantly increase large caps. Does the market need confirmation from Bitcoin (BTC), the highest rated digital asset on CoinMarketCap, or is it the main signal from Altcoin Ether (ETH)?

Daily performance of the crypto market

ETH at $ 300? Ethereum appears to be the next major cryptocurrency to follow CardanoETH at $ 300? Ethereum appears to be the next major cryptocurrency to follow Cardano

Daily performance of the crypto market. Source: Coin360

Ether has a key support level of $ 220

The ETH / USD pair recovered from $ 195 to $ 250 last month, but has been corrected along with Bitcoin in the past few days. When Bitcoin’s price dropped this week, Ether underwent a test and the green space between $ 271 and $ 222 was the zone that needed to be maintained as support.

ETH / USDT 1-day chart

1-day chart of the ETH / USDT pair. Source: TradingView

As shown in the graph above, the recovery was successful, confirming that the $ 217-222 level is a support level while it was in resistance throughout May.

The graph also shows the apparent resistance at $ 250 where an area is shown. This area has support between $ 217 and $ 222 and resistance at $ 250. Since the area is determined, it can be concluded that an outbreak leads to a trend.

The ETH / USD pair has been on an upward trend since the March 12 collapse. After that, a further increase above USD 250 is expected.

The following primary resistors cost $ 290 and $ 330 to $ 340. If the price drops below $ 217, a potential support test of the 100- and 200-day moving averages of $ 168-176 can be expected.

ETH / USD 1-day chart

1-day chart of the ETH / USD pair. Source: TradingView

The larger picture shows a clear accumulation period for the ETH / USD pair; And since July 2018, the price of Ethereum has been between $ 100 and $ 300, a two-year span that can explode.

The longer such an area is maintained, the greater the outbreak. In addition, such a long accumulation time also guarantees an excellent risk / reward opportunity.

What is decisive in this graphic? The MA for 100 and 200 days is below the current price, which guarantees support and provides further upward momentum.

Another argument for more profit arises from the increase in volume within this accumulation. As is often said The volume precedes the price, which means that the accumulation is often seen as an increase in volume. Ether is currently displaying this signal.

The total market capitalization shows an increased interest in cryptocurrency

The total market capitalization of cryptocurrencies shows a significant increase in support levels in 2018. Levels from $ 215 to $ 222 billion were supported at the beginning of the cycle and have changed again to become support.

Cryptocurrency with total market capitalization 1-day chart

1-day chart of the total cryptocurrency with market capitalization. Source: TradingView

Similar cases can be found in the market capitalization charts and in the ETH / USD pair. The increasing interest due to increasing volume is also a sign that a structure is taking place.

The MA for 100 and 200 days is below the current market cap, indicating that the market cap is currently in bullish territory.

The top priority for full market cap would be a break above the $ 305 billion resistance as it would point to a new higher high and another bullish argument to start a new massive cycle.

The total capitalization of the altcoin market is significantly delayed

Total Altcoin market cap cryptocurrency 1-day chart

Graph of total capitalization in the 1-day altcoins market. Source: TradingView

The market capitalization of altcoins has a specific accumulation period since the market capitalization of altcoins was between $ 50 and $ 113 billion. With the end of the accumulation areas, the peak also approaches the full capitalization of the altcoin market.

Again, it is critical that the 100- and 200-day moving averages should be supported in the same way they did throughout the cycle prior to the December 2017 peak.

If that happens An outbreak is likely to exceed $ 113 billion and a sustained recovery will exceed $ 135 or even $ 200 billion. So far, the resistance at $ 113 billion has been tested several times.

As a rule, the more a resistor is tested, the weaker the level. Another test will likely generate enough strength to break through and rise.

With that in mind, $ 200 billion is not impossible to expect in the next recovery.

The ETH / BTC pair compresses

ETH / BTC 1-day chart

1-day chart of the ETH / BTC pair. Source: TradingView

The ETH / BTC pair chart currently shows compression, but what does that mean? Basically, this means that the price is moving in tight areas, and when the price is moving in those tight areas, an outbreak usually leads to a strong volatile move.

In the case of ether, This outbreak is probably positive. A similar accumulation range occurs here, by which the BTC pair lies above the 100 and 200 day MA.

As long as these levels are supported, an upward breakout can be expected. The next areas to be observed are 0.029-0.03 Sats and 0.036-0.04 Sats.

The levels to be observed in the USD pair

ETH / USD 1-day chart

1-day chart of the ETH / USD pair. TradingView font

The most likely scenario is shown in the graphic above. As the previous resistance of $ 217 to $ 222 is confirmed as support, a continuation is expected.

As already mentioned, The previous rebound to $ 215 has shown that consolidation is most likely here. With this consolidation, power can be applied before the next wave of massive momentum sets in.

Once Ether’s price crosses the $ 250 mark, there are more options to move towards $ 290 and $ 330. In this case, the area with the most resistance to observation is $ 330.

On the other hand, If the price of ether falls below the support level of $ 217 to $ 222, a continuation down is likely. The final support is the 100- and 200-day MA range around USD 175-180.

This zone must remain a support to maintain further upward momentum. Otherwise, the $ 100 tests may even be likely.

The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every investment and trade movement involves risks. You have to do your own research when making a decision.