The price of Ether (ETH), Ethereum’s native cryptocurrency, has exceeded $ 547. After the breakout, traders will determine several key levels of resistance in the near future.
In the short term, traders generally see $ 600 as the main area of resistance for Ether as it marks the start of a bearish trend from May 2018. Hence, $ 600 could serve as an area of interest for sellers.
However, traders also believe that if Ether exceeds $ 600, it would likely enter the $ 700-900 range. There is little resistance to this until the all-time high.
Ethereum’s outlook remains positive
Numerous catalysts have come into play in the Ethereum network in recent months.
First, the upgrade of the Ethereum 2.0 network is progressing as a large number of ethers continue to flow into the address of the deposit contract.
Ethereum 2.0 is a major upgrade to move Ethereum from the PoW (Proof-of-Work) consensus algorithm to the PoS (Proof-of-Stake) algorithm. Essentially, miners are removed from the network to streamline the processing of transactions.
Second, data on the chain shows that whales continue to accumulate aether. This trend coincides with a decline in ether foreign exchange reserves, especially as more holders deposit the digital asset into the Eth2 deposit agreement. Santiment researchers wrote when ether initially broke out of $ 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 the second largest market capitalization asset was this high. # The rising top 10 holders of Ethereum combined with the coin supply on the exchanges fueled this rally. “
The strong fundamental catalysts for Ethereum and the favorable technical structure for Ether make traders appear optimistic about the short-term price development of Ether.
Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said a drop at $ 600 was likely. But the trader said that the way to $ 900 to $ 1,000 was open.
A pseudonymous trader called “Rookie” also said that $ 700 ETH is likely by the end of the year. ETH has seen a parabolic upward trend since July 2020, bridging the likelihood of a longer rally that will bridge until 2021.
Will Ether Follow Bitcoin Price?
During the 2017 rally, when bitcoin approached $ 20,000 on major exchanges, altcoins stagnated relatively. Ether and other major cryptocurrencies saw explosive price movements in January 2018 after BTC peaked.
A renewed dynamic of the ether in the year 2021 would correspond to the trend in the post-halving cycle of 2017. While there is little historical data to suggest that ethers and altcoins will follow the same trend as they did three years ago, the representation of an altcoin rally in January 2021 remains strong.
In order for Ether to see a sustained uptrend, the USD 600 resistance level would have to be reclaimed first, as many analysts see this level as the greatest short-term threat.