We recently predicted two potential scenarios for the price of Ether, and so far the price has been exactly following Scenario 1, which is a continued uptrend all the way to break the important price of USD 500. Will Ether be able to break that barrier and keep its bull run?
Ether price is consolidating for an upcoming BOOM?
Since the beginning of this week, Ether managed to reach an all-time high ever since 2018 of USD 485. This high price couldn’t hold and adjusted back to the price of USD 450, with a decrease of around 7%.
After this price adjustment, the price was seen consolidating between USD 450 and USD 470. In fact, the level of around USD 450 is a very important SL area, as it previously was a strong resistance area, and turned into a strong support area.
The week-long consolidation can be seen also since the 8th of November 2020, where prices fluctuated in a slight uptrend channel. (Fig.2) This move usually signals a slow but steady increase in prices, with minor adjustments every now and then. What might happen if prices manage to break through the USD 500 mark?
Scenario 1 is likely happening
In a previous article, we discussed the general potential of Ether approaching the USD 500 price. So far, the price has done EXACTLY that, reaching higher highs, followed by a slight adjustment in prices (Fig.3). We always stress in our articles the importance of price adjustments, which allow markets to “breath” and let go of profit takers, and taking in new traders who place buy trades instead.
The whole cryptocurrency market is mostly UP for the day
With Litecoin currently leading the top 10 cryptocurrencies with its 24 hours price increase of around 11%, the general consensus of the crypto world was seen on the positive side. This signals a healthy steady uptrend all across cryptocurrencies. Bitcoin has the biggest market capitalization with a current dominance of 64.7%. If Ether’s successful phase 0 manages to quickly attract investors into staking, Ether’s market cap should rise significantly, thus reducing the dominance of Bitcoin.
- Bitcoin (BTC) : + 2.61%
- Ether (ETH) : + 2.63%
- Tether (USDT) : 0%
- Ripple (XRP) : + 2.37%
- Chainlink (LINK) : + 2.43% (surpassing Bitcoin Cash by Market Cap)
- Bitcoin Cash (BCH) : + 0.14%
- Litecoin (LTC) : + 12.01% (surpassing Binance Coin by Market Cap)
- Binance Coin (BNB) : + 2.16%
- Polkadot (DOT) : + 3.40%
- Cardano (ADA) : + 3.09%
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