The price of Ether (ETH), Ethereum’s native cryptocurrency, has exceeded $ 547. After the breakout, traders are identifying several key resistance levels in the short term.
In the short term, traders generally see $ 600 as the main resistance area for Ether as it marked the start of a bearish trend starting in May 2018. As such, $ 600 could serve as an area of interest for sellers.
But traders also believe that if Ether breaks above $ 600, it will likely enter the $ 700 to $ 900 range. Above it, there is little resistance until the all-time high.
The outlook for Ethereum remains positive
The Ethereum network has seen numerous catalysts come into play in recent months.
First, the Ethereum 2.0 network update is proceeding, as a large number of Ether continue to flow into the deposit agreement address.
Ethereum 2.0 is a significant update to move Ethereum from the proof-of-work (PoW) consensus algorithm to the proof-of-stake (PoS) algorithm. Essentially, it removes miners from the network to streamline the settlement of transactions.
Second, the data on the chain show that whales continue to accumulate aether. This trend coincides with a decline in Ether exchange reserves, particularly as more holders deposit the digital asset in the Eth2 deposit agreement. Researchers at Santiment he wrote when Ether initially crossed $ 500:
“Following in the footsteps of $ BTC, $ ETH hit a 29-month high of $ 509. June 21, 2018 was the last time the price was this high for the # 2 market cap asset. # The rise of the top 10 Ethereum holders, combined with the supply of coins in exchanges, fueled this rally. “
Strong fundamental catalysts for Ethereum and favorable technical structure for Ether have traders optimistic about Ether’s short-term price performance.
Michael van de Poppe, full time trader on the Amsterdam Stock Exchange, She said a withdrawal at $ 600 is likely. But above, the trader said the road to $ 900 to $ 1,000 is open.
Similarly, a pseudonym trader known as “Rookie” She said that ETH at $ 700 by the end of the year is likely. ETH has witnessed a parabolic bullish trend since July 2020, increasing the likelihood of a prolonged rally into 2021.
Will Ether Follow Bitcoin’s Price?
During the 2017 rally, when Bitcoin was approaching $ 20,000 on major exchanges, altcoins were relatively stagnant. Ether and other major cryptocurrencies saw explosive price movements in January 2018, after BTC peaked.
Ether seeing renewed momentum in 2021 would be in line with the trend it saw in the 2017 post-halving cycle. Although there is little historical data to suggest that Ether and altcoin will follow the same trend as three years ago, the narrative of an altcoin rally of January 2021 remains strong.
In order for Ether to see a prolonged bullish trend, it should first claim the $ 600 resistance level as many analysts consider this level to be the biggest short-term threat.