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Ethereum

Analysts Expect Explosion Past $500 as Ethereum Nears Crucial Resistance

Nick Chong

Nick Chong | Nov 12, 2020 | 01:00

Ethereum

Analysts Expect Explosion Past $500 as Ethereum Nears Crucial Resistance

Nick Chong

Nick Chong | Nov 12, 2020 | 01:00


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  • Ethereum has undergone a strong rally over the past 48 hours as the crypto market has bounced back from the weekly lows.
  • The price of ETH currently is $473, up 5% in the past 24 hours alone.
  • Analysts expect further gains as the asset looks poised to close a daily candle above $482, which should trigger a move above $500.

Ethereum Set to Explode Past $500, Analysts Say

Ethereum has undergone a strong rally over the past 48 hours as the crypto market has bounced back from the weekly lows. The price of ETH currently is $473, up 5% in the past 24 hours alone.

ETH has begun to outpace Bitcoin once again. BTC is up by only around 3% in the past 24 hours.

Both assets are benefiting from a risk-on sentiment amongst investors. Market data indicates that after the three previous presidential elections, investors were overall risk-on as they had a certainty about the types of policies that would affect their investments.

Crypto-asset analyst Josh Rager says that the cryptocurrency could begin to move much higher than it is now as it looks to close above a pivotal support level. He specifically says that if Ethereum can flip $482 into support on a daily basis, it will be logical to target a move above $500:

“Just below daily high – looking for a break and close above $482 for $500+ targets ETH hasn’t been above $500 since July 2018.”

As the chart below shows, $482 is the daily resistance that Ethereum topped at during the summer prior to the crash toward $300.

Market trends also indicate that there exists a large confluence of selling pressure (orders) on leading exchanges in the $480 region. Ethereum will need to clear these blocks of sell orders before an uptrend is to be expected.

Image

Chart of ETH's price action over the past few months with an analysis by crypto trader Josh Rager (@Josh_Rager on Twitter).
Source: ETHUSD from TradingView.com

Fundamental Setback

Ethereum suffered a bit of a fundamental setback or hiccup yesterday.

Early in the morning, there were reports that the network had suffered a consensus bug due to some service providers continuing to use old clients. Changpeng “CZ” Zhao, CEO of Binance, commented on the matter via Twitter:

“There was a possible ETH chain split at block 11234873. Etherscan and Blockchair are showing two different chains and data after this block. We’re resolving now but have temporarily closed withdrawals. Funds are #SAFU.” 

Many in the space have said that this is a dangerous precedent for the blockchain. Blockchair’s lead developer, Nikita Zhavoronkov, commented on the matter:

“In my opinion, today’s consensus failure in #Ethereum shouldn’t be underestimated and should be considered as the most serious issue Ethereum has faced since the DAO debacle 4 years ago. An investigation is in order.”

ETH was largely unaffected by this issue, though.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Analysts Expect Explosion Past $500 as Ethereum Nears Crucial Resistance

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