Ethereum price is nearing a PIVOTAL area…Will it make it?


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.

 ETH/USD 1 Hour chart – Previous resistance turning into a support area
Fig.1 ETH/USD 1 Hour chart – Previous resistance turning into a support area – TradingView.com

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?

ETH/USD 1 Hour chart – Uptrend channel
Fig.2 ETH/USD 1 Hour chart – Uptrend channel – TradingView.com

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.

ETH/USD 1 Week chart – Scenario 1 in the making
Fig.3 ETH/USD 1 Week chart – Scenario 1 in the making – TradingView.com

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.

  1. Bitcoin (BTC) : + 2.61%
  2. Ether (ETH) : + 2.63%
  3. Tether (USDT) : 0%
  4. Ripple (XRP) : + 2.37%
  5. Chainlink (LINK) : + 2.43% (surpassing Bitcoin Cash by Market Cap)
  6. Bitcoin Cash (BCH) : + 0.14%
  7. Litecoin (LTC) : + 12.01% (surpassing Binance Coin by Market Cap)
  8. Binance Coin (BNB) : + 2.16%
  9. Polkadot (DOT) : + 3.40%
  10. Cardano (ADA) : + 3.09%

Stay Ahead, Stay Updated

Rudy Fares

Nexo – Your Crypto Banking Account

Instant Crypto Credit Lines™ from only 5.9% APR. Earn up to 8% interest per year on your Stablecoins, USD, EUR & GBP. $100 million custodial insurance.


Ad

This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission – but the prices do not change for you! 🙂

Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.

Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future. 


Posted By

Rudy Fares


Equity Trader, Financial Consultant, Musician and Blockchain Aficionado. I spend my time doing Technical and Fundamental Analyses for Stocks, Currencies, Commodities and Cryptocurrencies.


More from Ethereum


Ethereum Price – Two Potential Scenarios before 2021

ther jumped well above the USD 400 price and consolidated around USD 450 in an attempt to break a very …



Ethereum 2.0 – All You Need To Know About Staking ETH

The highly anticipated Ethereum 2.0 deposit contract was released on Nov 4. Now, interested users can deposit their required 32 …



Ethereum Price Analysis – Ether prices shooting through the roof?

Ether price has been on a strong uptrend in 2020. After the COVID-19 crash back in March, major news advancement …