The price of Ether (ETH), Ethereum’s native cryptocurrency, has exceeded $ 547. After the breakout, traders identify several key short-term resistance levels.
In the short term, traders generally forecast $ 600 as the main resistance area for Ether, as this marked the start of a downtrend from May 2018. As such, $ 600 could be an area of interest for Ether. sellers.
But, traders also believe that if Ether goes above $ 600, it would likely enter the $ 700 to $ 900 range. Above, there is little resistance until the all-time high.
Ethereum outlook remains positive
The Ethereum network has seen many catalysts come into play in recent months.
First, the Ethereum 2.0 network upgrade is progressing, as a large amount of Ether continues to flow into the address of the deposit contract.
Ethereum 2.0 is a significant upgrade to move Ethereum from the Proof of Work (PoW) Consensus Algorithm to the Proof of Stake (PoS) Algorithm. Essentially, it removes miners from the network to optimize transaction settlement.
Second, on-chain data shows that whales continue to accumulate ether. This trend coincides with a decline in Ether swap reserves, especially as more holders deposit the digital asset on the Eth2 deposit contract. Researchers at Santiment wrote when Ether initially came out of $ 500:
“Following in the footsteps of $ BTC, $ ETH hit a 29-month high at $ 509. June 21, 2018 was the last time the price was this high for the # 2 market cap asset. # The rise of the top 10 Ethereum holders, combined with the supply of coins on exchanges, fueled this rally.
The strong fundamental catalysts of Ethereum and the favorable technical structure of Ether make traders optimistic about the short-term price trend of Ether.
Michael van de Poppe, full-time trader at the Amsterdam Stock Exchange, said a pullback to $ 600 is likely. But, above, the trader said the road to $ 900 to $ 1,000 is open.
A pseudonymous trader known as “Rookie” in the same way said that ETH at $ 700 by the end of the year is likely. ETH has experienced a parabolic uptrend since July 2020, increasing the likelihood of a prolonged rally approaching 2021.
Will Ether Track Bitcoin Price?
During the 2017 rally, when Bitcoin approached $ 20,000 on major exchanges, altcoins were relatively stagnant. Ether and other major cryptocurrencies saw explosive price movements in January 2018, following the BTC spike.
Ether, seeing new momentum in 2021, would be in line with the trend seen in the 2017 post-halving cycle. Although there is little historical data to suggest that Ether and altcoins will follow the same trend as ‘Three years ago, the story of an altcoin rally in January 2021 remains strong.
In order for Ether to see a prolonged uptrend, it would first need to recover the resistance level of $ 600, as many analysts see this level as the biggest threat in the near term.