Ethereum is Primed to Shoot Towards $400 as Market Support Is Strong
- Ethereum and Bitcoin have seen mixed performance over the past few days.
- There was an attempted breakout a few days ago, but that failed due to weakness in legacy markets.
- ETH is up 0.8% in the past 24 hours, slightly outperforming Bitcoin.
- Ethereum is primed to move higher in the coming week or two due to on-chain and technical support, one analyst says.
- This rally would be in line with the introduction of the ETH2 rehearsal testnet that will precede the launch of the official upgrade.
- Analysts say that the upgrade is important for the cryptocurrency because it will drive usage.
- Ethereum’s price action, though, is at the end of the day somewhat dependent on that of Bitcoin.
- Bitcoin’s price action determines the directionality of the rest of the crypto-asset market.
Ethereum Could Soon Move to $400, Analyst Says as Market Bid Comes In
Over the past few days, multiple analysts have noted that Ethereum is likely to fall in the very near term. They point to the asset’s rejection in the resistance range of $365-375 just a few days ago, which suggests a return to local lows.
Yet another trader agreed with this sentiment just recently, however, he caveated that with the expectation of a rally afterward.
He shared the chart below on September 30th, noting that after Ethereum corrects, it is likely to revert higher to $400. He added that there are some whales (large holders) supporting the cryptocurrency as per the heat maps of leading exchanges:
“Mid term vision. I usually don’t look farther than 1 trade ahead, but this makes sense to me. ETH seems to REFUSE to dump. Hacks etc., and simply no response. Also spotted some whales supporting on the heatmap this morning at 351~. 375 -> liquidity below 337 -> test 400.”
Chart of ETH's price action since the end of July with analysis by crypto trader Chase NL (@Chase_NL on Twitter). Chart from TradingView.com
ETH2 Launch Approaching
Supporting the Ethereum bull case is the upcoming launch of ETH 2.0 (a.k.a. Serenity or ETH2). The upgrade is expected to imbue the cryptocurrency with a staking premium, along with giving it the capacity to scale over time to combat scaling concerns currently seen with Ethereum 1.0.
ETH2 is nearing as developers roll out a “rehearsal” testnet Spadina.
Unfortunately, there were some issues with the testnet:
“Although the eth2 clients have generally become quite robust, the long wait for finality today highlighted issues closer to the edge of the stack — cli options, testnet config, bootnodes, genesis calculation bugs.”
These bugs may be addressed in the next rehearsal testnet, set to launch in a week or two.
Photo by Liana Mikah on Unsplash Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum is Primed to Shoot Towards $400 as On-Chain Support Is Strong