November 6, 2020 / Analytics

Ethereum Price Analysis: Senerity Influences ETH/USD Growth

ethereum forecast

The upward movement accelerated in Ethereum (ETH) cryptocurrency market, and the bulls broke through a powerful resistance zone. Therefore, ETH/USD should rise to $ 470 by November 12th.

Key Points

  • ETH price consolidated above the support barrier at $ 430.
  • A downtrend line has formed with resistance around $ 435 on the hourly chart.
  • After breaking through the $ 450 barrier, the asset value will rush to $ 470.

ethusd chart

This week, the ETH rate has increased by 19% – from $ 370 to $ 442 (Bitstamp data). During the pump that had place on Wednesday, traders bought a large volume of coins and overcame the resistance at $ 400. On Thursday, an upward movement occurred again, as a result of which the price of the coin reached its highest level ($ 442) in the last two months.

On November 6, the value of the cryptocurrency corrected to $ 426, but the coins were quickly bought back and the rate exceeded $ 430. At this mark, a support zone has already formed, in this regard, the price of ETH should not fall below $ 430. With a high degree of probability, the asset will start pumping again within the next two sessions.

The bulls broke the bearish trend line that emerged on October 22nd. It is because of this that the Ethereum price skyrocketed. Buyers will face strong resistance at $ 450, which coincides with the 76.4% Fib recorded during the dump from $ 488 to $ 316. If this barrier is overcome, the value of the coin could potentially rise to $ 490 – the peak value since the summer of 2018.

Ethereum Skyrockets ToTheMoon On a Serenity Launch

ETH developers have confirmed that Ethereum 2.0 update, also known as Serenity, will be implemented on December 1. Moreover, Vitalik Buterin has already announced the launch of a deposit contract for miners who will mine the asset under the new PoS consensus protocol. The system will start working after users transfer to the deposit address 524,288 ETH (about $ 200 million).

ethusd2

Obviously, a bull run emerged in Ethereum market amid positive news about a long-awaited upgrade. Therefore, the positive trend should continue at least until the end of the month. The dynamics of the change in the rate of the coin did not go beyond the bounds of the bullish trend that started in March. Judging by the wave theory, the market is now at the stage of correctional wave B. If this hypothesis is confirmed in practice, then ETH will begin to fall in price before reaching $ 480. Otherwise, the cryptocurrency rate will soar to new heights.

Technical indicators:

  • 4 hours MACD indicator is in the bullish trend zone.
  • 4 hours RSI index is above 70 (in the negative area).
  • Major Support Level – $ 420.
  • Major Resistance Level – $ 450.
  • The nearest pivot points are $ 417 and $ 468.
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