- Ethereum has seen a strong bounce since the September lows near $310.
- The coin now trades for $455, though peaked at $465 a few days ago.
- Technical trends show that the cryptocurrency will likely continue its ascent in the months ahead.
- Analysts are specifically eyeing a move toward $800, as that’s where macro resistance lies.
Ethereum Technical Trends Suggest Growth Toward $800 Possible
Ethereum has seen a strong bounce since the September lows near $310. The price of the leading cryptocurrency recently peaked near $465, surging as a risk appetite has returned to global markets.
Technical trends show that the cryptocurrency will likely continue its ascent in the months ahead. This comes in spite of widespread sentiment that ETH may be left on the sidelines as Bitcoin is expected to rocket to all-time highs. The sentiment goes that because the cryptocurrency turned the $400 region into support, it will act as a springboard to $800.
Ethereum investors have long seen the $400 region as one of importance. It acted as a springboard during a rally in late 2017 and marked the highs in medium-term rallies over the past two years.
An analyst recently noted that Ethereum’s long-term trend remains positive for the cryptocurrency. Referencing the macro chart for ETH, he added that traders should have exposure to the asset:
“In a vacuum, $ETH is face meltingly primed for markup. In our world, it has the unfortunate mandate to be priced relative to bitcoin. Or, you can find derivatives that enable exposure to both. Either way, I need exposure to this.”
Analysts are specifically eyeing a move toward $800.
The chart below was shared with the following comment. The chart shows that Ethereum has little macro resistance until $800-900. That region is the point at which a relief rally in early 2018 topped:
“Stop charting ETH against BTC it under performs USD. HTF trend is heavily bullish going into 2021, I really hope we get the chance to buy around $350 again at some point before we really start to see price clear $600 and $800… I have a large USD position to spend.”
Chart of ETH's price action over the past three years with analysis by crypto trader Cactus (@Thecryptocactus on Twitter). Source; ETHUSD from TradingView.com
ETH2 Set to Drive Prices Higher
ETh2 is expected to drive Ethereum higher. ETH2 is the long-awaited upgrade that will give Ethereum a Proof of Stake consensus mechanism, allowing ETH holders to earn regular yields on their holdings.
Analysts think that ETH2 launching this year will spark an influx of accumulation of Ethereum.
Some specifically think that it will drive Ethereum to new all-time highs in the coming years, especially as ETH2 is fully rolled out.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum Is Cleared to Nearly Double In the Months Ahead: Analysts