Analysts Expect Ethereum to Hit $500 Despite Tapping Massive Resistance
- Ethereum has been flashing signs of immense strength throughout the past few days
- The cryptocurrency is now pushing towards its yearly highs as its bulls come out in full force
- This has allowed ETH to rally up to $437, with buyers now aiming at it setting fresh highs of over $440 in the near-term
- That being said, this level may act as strong resistance for the crypto in the near-term, potentially slowing its ascent
- Analysts are still convinced that this recent breakout signals that further upside is imminent, with one trader setting his sights on a move to $500
Ethereum is currently the best performing major altcoin within the market, showing serious signs of strength as it outperforms Bitcoin.
The crypto is about to set fresh yearly highs of over $440, although it does appear to be facing some resistance at this level – which may slow its climb in the near-term.
That being said, analysts still believe that further upside is imminent in the near-term. One respected trader is pointing to a confluence of factors that all suggest a move up towards $500 is imminent in the near future.
Ethereum Rallies Towards Fresh 2020 Highs as Momentum Mounts
At the time of writing, Ethereum is trading up roughly 3% at its current price of $438. This marks a massive surge from its recent lows of $379 that were set at the bottom of last week’s selloff.
This recent uptrend has allowed ETH to rally up to its previous 2020 highs, although it still remains unclear as to whether or not they will be surmounted.
These highs were set around $440 earlier this month, and the rejection here ultimately led it to plunge down towards its recent lows.
If broken above and flipped into support, this could catalyze some serious momentum for the cryptocurrency.
Analyst: ETH Likely to Target $500 as Confluence of Bullish Factors Emerges
One analyst believes that Ethereum will flip this level into support and begin rallying even higher in the near-term.
While speaking about this, analyst Josh Olszewicz explained that a failed head and shoulders pattern is one factor that will now boost the ETH bull case and send it up towards $500.
“ETH: always feel more comfortable BTFD than buying HH, but lots of [confluence] for $500 zone b/t failed H&S and PF diag,” he explained.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
As long as Bitcoin remains stable or continues slowly grinding higher, it is likely that Ethereum will be able to extend its current momentum further.
Featured image from Unsplash. Charts from TradingView.