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Is the price of Ethereum (ETH) on the way to $ 300 when the DeFi coins rise?

June 23, 2020

The Bitcoin (BTC) price has shown strength in recent days as the price rose from $ 9,300 to $ 9,800. However, greater strength can be seen in Ether (ETH) from Ethereum, the second-largest cryptocurrency by market cap, as this cryptocurrency recovered from $ 225 to $ 246.

Let’s take a look at the ETH charts, since Ether has clearly surpassed BTC in the past few days. The main question is: can Ethereum finally start collecting Bitcoin?

Daily performance of the crypto market. Source: Coin360

Is the price of Ethereum (ETH) on the way to $ 300 when the DeFi coins rise?Is the price of Ethereum (ETH) on the way to $ 300 when the DeFi coins rise?

Daily performance of the crypto market. Source: Coin360

Ether is the last hurdle to face $ 250 resistance before accelerating to $ 300

The crucial support between $ 215 and $ 220 witnessed a quick test and an immediate recovery. Such a recovery implies that buyers are ready to intervene and significantly increase the price.

ETH / USDT 1-day chart. Source: TradingView

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

Essentially, Ether is trading above the 100-day and 200-day moving averages (MA), which is a bullish indicator. Along with this strong signal, the volume has increased recently.

Frequently, The volume precedes the price, and if you combine this fact with the ETH side area, an increase in volume shows an accumulation.

Similarly, the price has been on an uptrend since March 12 as the cryptocurrency continues to topple past resistance to support. The previous switch from support to resistance was in the range of USD 217-222.

Such a change in support / resistance implies further upward strength with $ 250 as the next target. Ether’s price remains fairly close to this resistance zone.

If the ETH breaks $ 250, the $ 290 level may not stay the same as last time, as this is not a significant resistance zone. The ETH / USD pair will most likely see a rapid rise to $ 330 or even $ 360.

Such a rally would represent a new higher high, which is another bullish sign. The term “unbelief” could soon be used.

A short-term test of $ 234 is out of the question

ETH / USDT 4 hour chart. Source: TradingView

4-hour chart of the ETH / USDT pair. Source: TradingView

The 4-hour chart for ether shows a significant break with a downtrend, with the price rising towards resistance in the range of $ 247-252.

But does that mean that Ether is likely to break $ 250 at a time? In no case, because a higher range is expected before a significant breakdown resistance. In other words, this would mean that Bitcoin crosses the $ 10,500 mark.

In the short term, a possible retreat towards USD 232-235 is out of the question and would be healthy. In this sense, the previous support of $ 234 should serve as a support and lead to a possible recovery above $ 250.

Eventually, the resistance weakens as the resistance has been tested multiple times between $ 247 and $ 252. Retesting the resistance zone would likely result in a breakout.

The total capitalization of the altcoins market maintains a significant level of $ 82 billion

Altcoin market cap cryptocurrency 1-day chart. Source: TradingView

1-day market capitalization table for altcoins. Source: TradingView

Altcoins’ market cap shows strength as it is still above the 100-day and 200-day MA. Similarly, the required $ 82 billion support test was carried out and the switch from support to resistance was confirmed.

To justify another upward move, the $ 82 billion level of support had to be maintained, and it did.

Therefore, a continuation above the $ 95 billion resistance seems likely. This would also open the door to $ 113 billion and $ 135 billion, along with massive rallies across the board for most alternative currencies.

Since the total capitalization of the altcoin market lags far behind bitcoin, it could be argued that ether is a major trigger for the recovery of altcoins.

As soon as Ethereum moves, the other alternative currencies generally follow. This is because ether is the largest old coin and most projects are based on the Ethereum network.

In addition, Bitcoin’s price is currently 50% below its historic high. Ether is still 80% below the historical high and shows the weakness of altcoins in recent years with significantly lower Bitcoin performance.

Now after halving, Bitcoin’s price is stabilizing and the hype is shifting from Bitcoin to Altcoins, as seen at the recent Altcoin rallies including Ether.

ETH is still in consolidation with the BTC pair

ETH / BTC 1-day chart. Source: TradingView

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

The ether price is still in the process of consolidation. Constantly lower peaks and higher minima are typical signs of compression, which often leads to expansion and increased volatility.

In this regard, ether is a fine example of such compression. This was also shown by Zilliqa (ZIL), which led to a significant price increase.

The key area to be considered for ETH is the level of 0.023 Sats (BTC). This can still be tested as potential support that matches the 100-day and 200-day moving averages (MA). As long as this is the case, the top-rated cryptocurrency by market cap can be considered bullish, and more upward momentum is likely to occur.

If ETH maintains this level, the next significant resistance zone will be between 0.0275 and 0.03 sats. If ether can break through this resistance zone, 0.04 sats is the next target.

If Ether decides to rally Bitcoin, there could be a significant surge above $ 360, and a price level of $ 500 shouldn’t come as a surprise.

On the other hand, if the price of ether falls below the 100-day and 200-day MAs, the lows are likely to be retested. Note that 100-day and 200-day MAs are key indicators of bullish / bearish momentum. A loss would indicate further downward pressure.

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