Ethereum price is increasing like crazy. At the time of writing this article, the ETH price is at $441.50 and has been increased by almost 16% in the last 24 hours. It seems that the daily chart has formed a strong bull flag awaiting a breakout. The trading volume of ETH has been declining in the past week, intimating that a big move is nearby. What are the remaining resistances for ETH price to reach ATH? And is a 2600$ price level possible? Let’s look at it in more detail.
ETH Price Analysis – Ethereum price breaks $ 420!
After the Ethereum price increased to $415, it corrected sharply and gained strong support at the golden ratio of $360. Now, the price was once again able to break the resistance at $415-420, which suggests the price could increase more. The MACD displayed signs of a correction yesterday, but now the 1 hr range is at $423.37 – $427.85.
The last, small, horizontal resistance was waiting for Ethereum at $420 and price has already cracked it. This price rise has given bulls strength to support their positions and even grow them in expectation of a rally above $460 in the coming weekend. The two-year high exchanged at $433 is right now the most important resistance.
However, before that, the ETH price will have to crack the resistance at $430. After that, the gates could be wide open for the price to rise and the next price resistance could be sitting at the golden ratio at ± $550. This indicates an upside potential of almost 50%. In short, these three price resistances are crucial for ETH price to climb like crazy. The three price resistances in ascending order are as follows:
- ± $550
Ethereum price could be creating a large double bottom for chart pattern. Not only is this a double-bottom, but it is a unique pattern. Ethereum price is currently testing the top resistance of the $450 to see if it settles or not. If Ethereum price cracks all these above-mentioned resistance levels then the gate is wide open for it to break the following resistance levels:
Now, if it advances through resistances, the destination could in the short term touch the $1140 mark, its all-time high. If rejected, a correction could be possible. Now, based on Fibonacci extensions, the new short-, medium-, and long-term price targets could be found. Applying math alone, Fib ratios point to prices of $550, $624, $756, $839, $978, and ultimately $1140 for potential new price cuts or the resistances within just 4 months.
ETH Price Analysis: Ethereum Price Long-Term Analysis
If you ignore the technical analysis, then ETH/USD long-term price might have a bright opportunity because of the upcoming update to Ethereum 2.0. It remains one of the most highly anticipated updates in the history of cryptocurrencies. Although it’s still unknown when exactly ETH 2.0 will be out.
The Ethereum price could be currently on the way to touch the golden ratio of ± $ 550. The MACD remains to develop bullishly, and the RSI could also move upwards. So Ethereum’s next bullish price target is $550.
ETH Price Analysis: Against BTC, ETH Price has gained almost 11%
Against Bitcoin, the Ethereum price could still gain almost 19% in the next two days before it faces a meaningful resistance. Year-To-Date (YTD), ETH has had an ROI of almost 223% against the USD.
The ETH price Sharpe ratio calculated over the past 30 days of daily returns is almost 8.72. The Sharpe Ratio or Sharpe indicator is normally applied to calculate the performance of an investment by adapting for its risk. The greater the ratio, the higher the investment return related to the assumed risk. Therefore, the higher the Sharpe, the more solid the investment. The ratio can be utilized to estimate a particular coin or an entire portfolio.
ETH Price Analysis: What does the Principle of Polarity say about Ethereum Price? Is a 2600$ ETH Possible?
Now, if we closely observe the yearly price chart of Ethereum, we will have to look at the principle of polarity. The Principle of Polarity says that once a Resistance (support) level is cracked; it modifies its energy and becomes Support (Resistance) the next time it is touched. This occurs because of the change in Demand and Supply. When a resistance (support) is cracked, it is because the demand (supply) had replaced the demand at that price level, thus cracking it.
Now, by applying this principle of polarity in the case of ETH/USD, we find that the ETH price has climbed by almost 16% in the last 24 hours, while the daily trading volume currently passes $18.5 billion.
Now, in the simplest model, a trend could be described as an inclination in price. The current inclination is sitting at $450. If the trend declines its control and goes sideways, the market is supposed to be “trendless” or running in a range.
By applying the principle of polarity here and dividing the current market cap of ETH by Bitcoin’s current supply by normalizing supply and backing out price considering market cap remains the same (price if BTC-normalized supply) then the ETH/USD price could reach between $2,500 to $2,600. The ETH/USD break-even multiple is 3.36. This is the multiple by which it needs to rise to reach ATH again. This multiple might seem difficult to obtain in normal markets. However, the cryptocurrency world remains full of surprises and anything can happen here.
Ethereum has touched its 2-year high as its price developed resistance at $400, and supported the ETH to go up to $433. Right now, it could be witnessing a slight correction, with indications being that the wave will remain in the near future and it could touch its all-time high $1140. In the year 2020, Ethereum has given almost 1000% returns before it retraced. With the Ethereum price rising, it could be a great asset for people who can take benefit of these price fluctuations with a long or short position. We wish you happy trading!