Ethereum started a fresh increase above $1,300 against the US Dollar. ETH price is showing positive signs and it is likely to continue higher towards $1,400 and $1,500.
ETH price is gaining bullish momentum above the $1,250 resistance level against the US Dollar.
The price is likely to face hurdles near $1,380, but it is well above the 100 simple moving average (4-hours).
There was a break above a major bearish trend line with resistance near $1,265 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair is likely to continue higher towards $1,400 and $1,500 in the coming sessions.
Ethereum’s Ether Signaling More Upsides
This past week, bitcoin and ethereum saw a fresh decline below $1,200 and $35,000 respectively against the US Dollar. ETH price even declined below $1,100, but it remained stable above the $1,000.
A low was formed near $1,042 before the price started a fresh increase. There was a strong close above $1,200 and the 100 simple moving average (4-hours).
There was also a break above the 50% Fib retracement level of the downward move from the $1,440 swing high to $1,042 low. There was a break above a major bearish trend line with resistance near $1,265 on the 4-hours chart of ETH/USD.
Ether price is now approaching the $1,345 resistance zone. It is close to the 76.4% Fib retracement level of the downward move from the $1,440 swing high to $1,042 low.
A clear break above the $1,345 level could open the doors for a fresh increase above the $1,400 resistance zone. In the stated case, the price could continue to rise towards the $1,500 level. The next major resistance sits near the $1,530 level.
Dips Supported in Ether (ETH)?
If Ethereum fails to clear the $1,345 and $1,380 resistance levels, it could start a downside correction. The first key support on the downside is near the $1,240 level.
The main support is forming near the $1,180 level (the recent breakout zone) and the 100 simple moving average (4-hours). Any more losses could lead ether price towards the $1,080 support zone.
4 hours MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is well above the 50 level.
After touching the daily low of $1039, the price of Ethereum is seen recovering to the upside at the $1238 level.
Resistance levels: $1400, $1500, $1600
Support levels: $900, $800, $700
ETH/USD is seen trading towards the resistance level of $1250 level within the ascending channel. Yesterday’s decline has been largely attributed to the fact that Ethereum plummeted pretty significantly. More so, ETH/USD is moving above the 21-day moving average but it can rise higher and break above the 9-day moving average at around $1250. If ETH/USD falls and drops beneath the support of $1100, the coin may turn bearish.
Where is ETH Price Going Next?
If the sellers begin to add downward pressure to the crypto, initial support is expected at $900. Beneath this, support can be found at $800 and $700. On the other hand, if the bulls can defend the $225 level and allow ETH to rebound, an initial resistance may be located at $1230. Above this, additional resistance is expected at $1400, $1500, and $1600 levels.
Moreover, the technical indicator RSI (14) is about to cross above the 60-level showing that the bullish momentum may step back into the market. If the technical indicator manages to make a quick turn-back, then the bulls stand a chance to allow Ethereum to rebound. However, if it penetrates beneath, the cryptocurrency may resume a downward spiral.
Against Bitcoin, the market price remains above the 9-day and 21-day moving averages as it is currently trading at 0.037 BTC and the bulls are pushing the market price above towards the upper boundary of the channel. Meanwhile, if the market begins to drop below the moving averages, the next key supports may likely be at 0.032 BTC and below.
However, considering the upside, the bullish movement may push the market price above the channel, when this is done, the resistance level of 0.042 BTC and above may be visited. Meanwhile, the RSI (14) is moving back towards the upside and this indicates a bullish momentum in the market.
Ethereum (ETH) reached a new all-time high of $1,440 but is in danger of dropping further below $1,300
ETH/USD traded at a new all-time high of $1,440 yesterday, but an increase in sell-off pressure has pushed it progressively lower. It has touched lows of $1,269 and remains vulnerable to more slips as per the outlook of key on-chain metrics.
This perspective is shared by on-chain analytics platform Santiment, which says that some signals suggest ETH could turn bearish in the short term.
One of the signals that a top might be in for ETH/USD is the MVRV indicator. The MVRV ratio helps gauge if an asset’s exchange-traded price lags the “fair value”. It also helps indicate price tops and bottoms.
According to Santiment, “Ethereum’s 30-day MVRV ratio is in red territory. It’s lower than on previous top but still overinflated“. The 30-day MVRV is at 30%, which the firm says is “a danger zone“.
Ethereum supply on exchanges has also spiked over the past 24 hours to suggest investors have moved their coins onto exchanges and are ready to sell. If more holders decide to cash in on the recent price spike, increased downward pressure will likely push ETH/USD further lower.
A downside correction has forced ETH to retreat below the critical price level of $1,300, suggesting the momentum that took bulls to the ATH could fade sooner than expected. There is a declining parallel channel formation strengthening on the 4-hour chart.
This outlook, with the price having touched $1,269, means declines to $1,250—$1,200 levels could invite even more selling pressure.
Ethereum’s downward action has included a retest of the 23.6% Fibonacci retracement level of the recent move from $1,233 low to $1,440 high. Bears are now looking to break lower, with $1,233 offering the main point of interest in the short term.
If the price drops below the support of an ascending trendline, the next major target will be the 50-SMA level near $1,209.
While it looks grim for ETH bulls, there’s every chance a flip puts a brake on the rot. In such an event, bulls face strong resistance at $1,358 (61.8% Fibonacci retracement level of swing high from $1,233 low to $1,440 high).
From here, a close above the upper boundary of the channel ($1,393 on the 4-hour chart) could open up room for bulls to retest the all-time high zone.
A clear break above the ATH and sustained pressure towards upper limits of $1,500—$1,600 could see $2k level come into the picture.
According to data from CEX.IO, Bitcoin sat just below $30,000 at the end of 2020, with its price on New Years Eve closing at $29,033
It is mid-January, and both Bitcoin and Ethereum — the crypto industry’s two largest coins — have already seen significant price changes. There has been little regarding outside influences on the coins’ prices, but they still saw some strong shifts, likely influenced by the change in demand alone.
Bitcoin in January 2021
The recent Bitcoin price surge that has been leading the market rally has continued in early 2021, especially in the first 10 days of the new year.
According to data from CEX.IO, Bitcoin sat just below $30,000 at the end of 2020, with its price on New Years Eve closing at $29,033, with a daily high at $29,200. In the first two days of January, the coin has been trading sideways for the most part, but then, on 3rd January, saw a surge that took it up to $34,800.
This was a new all-time-high that the coin managed to maintain for around two and a half days. After reaching this level, BTC saw a correction to $30,000, which was followed by a massive new surge that started on 5th January.
The new price increase led the coin to a new all-time high of $41,500 on 8th January. While BTC dropped slightly after that, the real correction started around 10th January, when the coin started sinking, ending its drop at $30,333 on the next day.
The next five days saw BTC struggle to grow, and it even managed to surge to $40,100 again on 14th January. However, its price was rejected by the resistance at $40,000, which sent it back to the $34,400s. At the time of writing the coin is once again surging up and currently sitting at $37,428.
Ethereum in 2021
Ethereum has followed a similar path to Bitcoin, which is not that surprising, considering Bitcoin’s dominance in the crypto industry. Ethereum ended 2020 with the price of $737, while its daily high on 31st December was actually $744, according to CEX.IO data.
The first two days of the new year did not see much happen, and the coin has mostly remained where it was. Then, around 3rd January, its price surged up, breaching the $1,000 mark. Ethereum kept going up to $1,095, which it reached on 4th January.
After a small correction, Ethereum made another major leap upwards, hitting a new two-year high at $1,342 on 10th January. After that, it started seeing a strong correction, similarly to Bitcoin.
The correction took it down to $900 by 11th January, but that’s when traders started buying again, aiming to make good use of the dip. Ethereum was back above $1,000 by the next day, and while it sank below $1,000 one more time since then, it quickly recovered, never going below $988.
The coin then surged back towards $1,300, but hasn’t reached it so far. Instead, the highest that it managed to go to was $1,255, at least thus far. The 15th January saw another dip to $1,070, but today’s recovery had already brought it back above $1,200.
At the time of writing, the coin sits at $1,211 according to CEX.IO, with a daily volume over $35 billion. Meanwhile, its market cap is sitting at $138.4 billion, which is still far below Bitcoin’s $694bn.
What awaits Bitcoin and Ethereum in 2021?
When it comes to Bitcoin, the stock-to-flow model has been extremely accurate in predicting the coin’s future price action. 2020 brought Bitcoin’s third halving, which has typically been followed by a major supply shock. Not to mention the increased activity of institutional investors who have been buying the coin in massive quantities through intermediaries such as Grayscale and Microstrategy.
With that in mind, I expect Bitcoin to hit $50,000 by the end of Q1 2021, or by March 31st. This may happen before this date, given that the coin has already reached an ATH above $41,000.
As we go deeper into the year, the coin will likely continue surging up, and I believe that it could reach $80,000 by the end of Q2. Historical data shows that a drop in activity can be expected during the summer, which might be the time when a correction could take place. After that, I expect another surge in Q4, with the coin ending the year at the price of $90,000.
On the other hand, we have Ethereum, which has already surpassed $1,300 earlier this year. While the coin has retraced its steps since then, it will likely go back to this level by the end of Q1.
Unlike Bitcoin, Ethereum has not had the chance to hit a new ATH this year, mostly sitting on the sidelines, which is unusual, given all the activity its network has seen. With the project still leading in smart contracts, dApps, and DeFi — not to mention the early stages of its shift to Ethereum 2.0 — there is definitely a lot of room for Ethereum to grow down the line.
I believe that the coin could potentially even rise to twice its current price by the end of Q2, potentially ending the second quarter at $2,200. After the summer, the surge will take BTC to $90k and could also include Ethereum, especially if the history repeats itself, and the coin ends up being late to the party as it was in 2017/2018. By the end of the year, I expect it to come close to the $5k mark, possibly at $4,900.
“The high has now been taken. Let’s see the ETH response from here. BTC spent 24 hours around its high before eventually selling off so not expecting an immediate response. Bulls (and me) hoping for a power through instead of a grind here.”
ETH/USD price action continues to move within a bullish nature, forming technical patterns for moves to the north.
Resistance levels: $1400, $1500, $1600
Support levels: $1000, $900, $800
ETH/USD continues to struggle this week as it trades with a slight gain of 0.02% to bring back the price of the coin from the low of $1181. Ethereum (ETH) continues to trade within a long term ascending price channel. A couple of days ago, the cryptocurrency was struggling to break resistance at $1294 but it must overcome here to travel higher.
What Expect from Ethereum (ETH)
Looking ahead, if the sellers push ETH back below the 9-day moving averages, initial support lies at $1100. Beneath this, support is located at $1050, and below the lower boundary of the channel, the critical support levels lie at $1000, $900, and $800. Alternatively, if the buyers regroup and start to push higher, resistance is located at $1300. Above this, resistance lies at $1400, $1500, and $1600.
However, the technical indicator RSI (14) is trending around 67-level, below the overbought zone if the price continues to move above the 9-day and 12-day moving averages and this indicates that the price could rise a bit more before it goes retreats again.
When compares with BTC, Ethereum is currently trading at 0.3413 BTC after witnessing a bearish moment in the last few days. Looking at the daily chart, the current trend of the coin is looking bearish in the short-term, but should the price break below the moving averages of the channel, the new monthly low might be created.
However, a continuation of the downtrend could hit the main support at 0.0315 BTC before falling to 0.0300 BTC and below. More so, the buyers could probably push the market above the upper boundary of the channel, with potential resistance of 0.038 BTC and above. The technical indicator RSI (14) nosedives below the 65-level, indicating that the bearish movement may continue.