The correction has ended and an upward trend has emerged in Ethereum (ETH) cryptocurrency market. Given the data, ETH/USD should rise in price to $ 1400 – a record figure since January 2018.
- ETH price is trading above the $ 1100 support zone and the 100 hour moving average ($ 1079).
- A bullish trend line has formed with support around $ 1060 on the hourly chart.
- The upward movement will accelerate after buyers break the resistance barrier at $ 1184.
On January 10, the Ethereum rate rose to its maximum value in the last three years – $ 1354 (Bitstamp data). Then there was a correction, as a result of which the asset fell to $ 908. The first zone of buying interest is in the $ 900-950 range, so the value of the coin did not drop below $ 908 and quickly rose to $ 1152. On Wednesday, the bulls, for the second time in a row, unsuccessfully tried to gain a foothold above the resistance barrier at $ 1130, which coincides with the 50% Fibonacci level recorded during the dump from $ 1354 to $ 908.
Most likely, during the next session, the ETH rate will drop to $ 1081 (38.2% Fib), push off from this barrier and reach $ 1184. If this barrier is successfully overcome, the price of the coin will increase to $ 1250. At the same time, the dynamics of the upward trend, which started on January 11, indicates an increase in the cost of ETH to $ 1400 by January 21.
Ethereum Is Moving To $ 2000
Analyst Michael van de Poppe outlined the goal of the To the moon mission – $ 2000. In his opinion, the flight to the moon remains in effect, because the ETH rate did not fall below $ 900 during the last correction. Michael predicts the next round of the upward trend, which will set a new historical record for the value of the coin. Two macro factors also speak in favor of bull run: the number of searches for the keyword “Ethereum” has increased to the maximum value in history; on the Paxos itBit exchange, the demand for cryptocurrency is growing.
Of course, the risk of a fall in the price of the coin remains. If the bullish trend ended at $ 1354, the market is now in the stage of corrective wave B. It may end at $ 1200, after which wave C with a target of $ 700 will appear. Ethereum began to rise from $ 80 in March 2020. Thus, the asset price has already increased almost 14 times. The exponential growth of the Ethereum rate started at the end of December at $ 550. Taking these factors into account, it can be assumed that the value of the asset will drop to $ 700.
- MACD indicator for 4 hours is in the bullish trend zone.
- RSI index for 4 hours – above 50 (in the neutral zone).
- Major Support Level – $ 1065. Major Resistance Level – $ 1184.
- The nearest pivot points are $ 989 and $ 1166.