Bitcoin

Parabolic rally “is a real possibility” after the price of Ethereum hits $ 547

The price of Ether (ETH), the native cryptocurrency of Ethereum, exceeded the $ 547 level. After the separation, Traders are signaling several important short-term resistance levels.

In the short term, traders generally envision $ 600 as the main resistance zone for Ether. This level marked the beginning of a downtrend in May 2018. As such, the $ 600 could act as aArea of ​​interest for sellers.

But traders believe that too If ether breaks above $ 600, it would likely step into the $ 700 to $ 900 range. Above this level there is little resistance to the all-time high.

Ether Price weekly chart. Source: TradingView.com

Ethereum’s outlook remains positive

Parabolic rally “is a real possibility” after the price of Ethereum hits $ 547
Parabolic rally “is a real possibility” after the price of Ethereum hits $ 547

Numerous catalysts have come into play in the Ethereum network in recent months.

First, The Ethereum 2.0 network update is progressing. as a large amount of ether continues to flow towards the deposit contract.

Ethereum 2.0 is an update that moves Ethereum from the PoW (Proof of Work) consensus algorithm to the PoS (Proof of Stake) algorithm. Essentially, miners are being removed from the network to streamline transaction processing.

Second, data on the chain shows that whales continue to accumulate aether. This trend coincides with a decline in the exchanges’ ether reserves, especially as more owners deposit the digital asset in the Eth2 deposit agreement. Santiment researcher they write when ether broke over $ 500:

Following in the footsteps of $ BTC, $ ETH hit a 29-month high of $ 509. June 21, 2018 was the last time the price of Asset # 2 by market capitalization was this high. The rise of the #Ethereum’s top 10 holders coupled with the coin being delivered to the exchanges fueled this rally. “

The strong fundamental catalysts of Ethereum and the favorable technical structure of ether make it up Traders are optimistic about the short-term development of the ether price.

Michael van de Poppe, a full time trader on the Amsterdam Stock Exchange, said that a pullback is likely to occur at $ 600. But above that level, the trader said the path to $ 900 or $ 1,000 is clear.

Possible ether price cycle with resistance levels. Source: TradingView, Michael van de Poppe

A pseudonymous trader known as “Beginner” said Similarly, ETH is likely to hit $ 700 by the end of the year. ETH has seen a parabolic upward trend since July 2020, which increases the likelihood of a longer rally until 2021.

Will Ether follow in Bitcoin Price’s footsteps?

During the 2017 rally, when Bitcoin was close to $ 20,000 on major exchanges, altcoins stagnated relatively. Ether and other major cryptocurrencies saw explosive price movements in January 2018 after BTC hit its all-time high.

Ether, gaining momentum again in 2021, would go along with the trend BTC saw in the 2017 half-year after halving. Although there is little historical data to suggest that ether and altcoins will follow the same trend as they did three years ago, the narrative of an altcoin rally in January 2021 remains strong.

In order for Ether to see a sustained uptrend, it would first have to return to the USD 600 resistance level. so many analysts see this level as the main threat in the short term.

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