Ethereum Consolidates Around ATH Levels: Breakout Might Initiate Huge Move (ETH Price Analysis)

Ethereum Consolidates Around ATH Levels: Breakout Might Initiate Huge Move (ETH Price Analysis)

ETH/USD: ATH Area Tested One Last Time?

Key Support Levels: $1425, $1392, $1350.

Key Resistance Levels: $480, $1500, $1530.

Ethereum managed to climb by 8% today as it pushed from $1375, breaking $1400 to reach $1456 as the current daily high. The cryptocurrency is now trading around the previous Jan-2018 ATH price, which was $1440, according to Bitstamp.

Even though ETH saw a higher price earlier in January, reaching as high as $1480, the coin couldn’t hold above and failed to close a daily candle above the previous ATH price area. Following the $1480 rejection, ETH plunged back into the $1200 support as of last week.

If ETH finally overcomes the $1440 previous ATH area, we can expect a huge move into the price discovery area. Where ETH/USD never traded before and not a lot of resistance is expected, just as Bitcoin did with the $20K previous ATH level.

ETH-USD Short Term Price Prediction

Looking ahead, the first level of resistance lies at current levels, which is the 2018 ATH. This is followed by $1480 (the current ATH Price) and resistance at $1500, provided by a rising price channel’s upper boundary and the psychological level.

Beyond the channel, resistance is found at $1530 (1.414 Fib Extension), $1600, and $1650 (1.618 Fib Extension).

From the bearish side, the first support lies at $1425 (previous ATH). This is followed by $1392, $1350, and $1300. Further support lies at $1260 (.236 Fib) and $1200.

The RSI also bounced higher from the midline, indicating the rising bullish momentum within the market.

ETH/BTC: Facing 0.042 Resistance

Key Support Levels: 0.0405 BTC, 0.0396 BTC, 0.039 BTC.

Key Resistance Levels: 0.0416 BTC, 0.042 – 0.0424 BTC, 0.0434 BTC..

Against Bitcoin, Ethereum pushed as high as 0.045 BTC on January 25th. From there, it met resistance on the upper boundary of the marked ascending price channel and started to descend, till breaking below the channel. Following the breakdown, ETH/BTC found support upon 0.0396 BTC (Feb 2019 High), after reaching as low as 0.036, while Bitcoin spiked beyond $38K due to Elon Musk’s pump last Friday.

Yesterday, ETH finally reclaimed the critical 0.04 level, and today the bullish momentum continued as ETH recorded a daily high of 0.042.

ETH-BTC Short Term Price Prediction

Looking ahead, the first level of resistance lies at 0.0416 BTC (2019 High). This is followed by 0.042 – 0.0424 BTC (1.272 Fib Extension), 0.0435 BTC (1.414 Fib Extension & lower boundary of the ascending channel), 0.044 BTC, and 0.045 BTC (1.618 Fib Extension).

On the other side, the first support lies at 0.0405 BTC (2020 High). This is followed by 0.0396 BTC (Feb 2019 High), 0.0390 BTC (.382 Fib), and 0.0376 BTC.

The RSI is above the midline, around 60, as the bulls control the market in the longer-term. Besides, the Stochastic RSI had gone through a bullish crossover signal from the oversold area, which might give fuel for another leg up.

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by TradingView.

Cryptocurrency charts by TradingView.

Ethereum price hits a $1,500 all-time high as ETH options and DeFi heat up

The price of Ether (ETH), the native cryptocurrency of the Ethereum blockchain network, achieved a new all-time high of $1,500 today. Data suggests that the ETH options market showed dominant call activity, and this may be a primary factor in the rally to a new high.

Across major exchanges, the price of ETH surpassed $1,500 after the options market showed dominant call activity.

In the options market, there are two types of contracts: puts and calls. Puts are sell orders, and calls are buy orders. When there are more calls in the market, it means the options market is bullish.

ETH/USDT 15-minute chart (Binance). Source: TradingView.com

The options market was dominated with calls before the rally

Before the rally to a new all-time high, analysts at Laevitas, a data analytics platform, said 80% of Deribit’s ETH volume has been dominated by calls.

Based on this volume trend, the analysts predicted that ETH is likely to see a major rally. They said:

“#ETH 1-month VIX has reset to levels last seen in early January while price is stabilising close to ATH. 80% of @DeribitExchange volume today is dominated by calls, this looks like it’s about to pop.”

Within hours, ETH surged past $1,500, recording a new all-time high for the second time in a month.

ETH had been flirting with the all-time high throughout the past week, but each time it has gotten close to the resistance, the price has rejected to the closest underlying support.

The fact that the price didn’t see a deep pullback after retesting the previous record-high meant the resistance was weakening. Hence, on its fourth retest, the resistance level was breached.

As Three Arrows Capital CEO Su Zhu said, the momentum of Ether has been so strong that if an investor sold BTC to ETH at the $41,000 peak, the investor would have made more than selling to the U.S. dollar. He said:

“Crazy thought, but you would’ve made more selling $BTC to $ETH than btc to usd at the local 41k top. Crypto/crypto if you want to play cycles. Crypto/fiat up only.”

So, what’s next for Ethereum?

Traders say that if the Ether daily candle closes above $1,440, it would solidify a bullish uptrend. A pseudonymous trader known as “Trader Koz” said:

“Daily close above $1,440 confirms the low being in, in my opinion. Still time for this to get rejected so I’m trying to hold off on the full-blown celebration until later.”

Researchers at IntoTheBlock shared a similar sentiment. After Ether broke $1,500 for the first time in history, the researchers said on-chain activity has returned to January 2018 numbers.

“ETH breaks the $1,500 barrier for the first time and enters into price discovery. And to celebrate the ATH, here are some facts: - 100% addresses profitability - On-chain transactional activity back to Jan 2018 numbers (averaging 1.16m daily) - 52.38m addresses holding ETH (ATH)”

Ethereum price: bulls eye breakout above $1,400

Ethereum (ETH) could rocket towards a new all-time high (ATH) if bulls hold prices above $1,400 amid growing optimism

Ethereum (ETH) price has broken above a major resistance level at $1,400 and touched highs of $1,439. It appears ETH could rocket to a new ATH given the technical outlook currently paints an extremely bullish picture.

At the time of writing, Ethereum’s price is up 8.5% and is trading at $1,424.

ETH price positive signals

Encouragingly for buyers, the bullish technical view suggested by the charts is likely to coincide with a spike in institutional inflows, adding fuel to the anticipated surge in Ethereum’s value.

Grayscale has announced it’s resuming its placement of shares for accredited investors. Meanwhile, the CME Group will launch Ethereum futures contracts on 08 February 2021, opening ETH to more institutional investments.

According to on-chain data provider Santiment, another positive signal for ETH/USD short term is the Mean Dollar Invested Age metric. This is a price prediction metric that looks at the age of invested fiat in ETH. As per the platform, the indicator has continued to drop to suggest more inflows.

More importantly, older investments are being circulated to foreshadow a potential spike in price.

“Ethereum ticked back up to a high of $1,411 today & is currently +5.2% in the past 24 hours. Though there are concerns like the rising average gas fees, a positive sign is the fact that invested fiat in $ETH is at its youngest age since December 2018“, the firm noted.

As the chart below shows, ETH/USD has been in an uptrend since October 2020 when the invested age metric began to decline.

Ethereum’s Mean Dollar Invested Age chart. Source: Santiment

Ethereum price outlook

After breaking above the $1,280 resistance level, Ethereum increased its upside momentum and established a healthy support base above $1,300. The price of Ether has been trading upwards towards the apex of an ascending triangle pattern on the daily chart.

The horizontal line offered resistance at $1,400, which bulls have broken above as ETH/USD touched highs of $1,439. The target is to continue higher within the ascending parallel channel, with a breach of the middle line likely to see ETH/USD eye prices around $1,600.

A bullish flag pattern confirmation could send prices towards the coveted $2,000 level.

ETH/USD daily chart. Source: TradingView

However, a retracement to the support zone below the previous resistance line ($1,400), combined with other bearish signals could see ETH/USD correct even lower.

A breakdown to the uptrend line could signal a bearish flip if sell-side activity increases. In such a case, Ethereum’s price could drop to the 20-day EMA ($1,282). Although this zone provides a robust cushion, another downturn here might herald another freefall to the 50-day EMA ($1,079).