Ethereum Market Analysis: 01 January 2021

Spread the love

Ethereum, the king of the altcoin industry, has seen a major surge in price charts lately due to Bitcoin’s bull run. At the time of the press, Ethereum had achieved a price level of $743, the last price level seen in May 2018. Clearly, unlike Bitcoin, Ethereum did not hit its 2017 ATH, with ETH already taking an 87% surge to do so.

At the time of publishing, Ethereum was faced with a degree of resistance that could easily be invalidated if the purchase pressure persisted.

Ethereum 1-week chart

Source: ETHUSD on TradingView

As previously mentioned, Ethereum invalidated a couple of bearish signals, just like Bitcoin did. This was mainly due to the buying pressure from institutions, coupled with sell-side liquidity drying up and retail FOMO. This seemed to be the perfect concoction for a parabolic price surge.

Ethereum was sticking to the ascending channel pattern on the weekly timeframe and was expected to hit a ceiling at $624 and $655. However, the buying pressure and FOMO contributed to the price shattering through this glass ceiling and surging to $747.

What seemed even more interesting was that the press time level was just below the 0.5-Fibonacci level of the trend-based Fibonacci tool extending from the highs of December 2017 to the bottom seen in December 2018, and finally back to the latest high of $756. Thus, the 0.5-level at $750 will be a formidable resistance for the cryptocurrency’s price in the near-term.

RECOMMENDED READ:  How much "Bitcoin Bull Run" of 2020/2021 differ from that of 2017 for traders

On the question of the cryptocurrency’s indicators, the RSI has been oversold for almost 49 days on the weekly timeframe, while the OBV showed a constant surge in volume.

Finally, while the Stochastic RSI [adjusted] was heading into the overbought zone, the Stochastic RSI attempted to get out of the overbought zone.

Conclusion

If bitcoin’s purchasing pressure is diminished, we’ll see a domino effect that will lead Ethereum’s price to decline. So, any predictions for the price of Ethereum can better be characterised as “cautiously optimistic.” Also, because Ethereum is closely trailing Bitcoin, it may also face a correction soon, and when it comes to play, we may see big long liquidations. The price will decline by 20 percent and fall below $600.

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

 276 Interactions,  2 today

READ ALSO:
Romanian university intends to consider cryptocurrency payments for admissions fees.

The academic college, which has about 11,000 students, stated that the inclusion of crypto payments was part of a campaign Read more

RECOMMENDED READ:  US Treasury said to weigh new crypto transaction reporting rule aimed at self-hosted wallets
Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more

Fidelity’s Tom Jessop on why Crypto has reached a “tipping point.”

The crypto market has gained traction as a result of low interest rates and fiscal stimulus, according to a Fidelity Read more

How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

Bitcoin, BTT, Dogecoin Price Movement Analysis for 7th April, 2021

Bitcoin was expected to remain above the $55,800-support, a level that coincided with its 200-SMA. BitTorrent Token was projected to Read more

Why crypto analyst Ben Armstrong says, ‘He Very Confident Bitcoin Will Reach $300K This Year.’

Recently, blockchain expert and influencer Ben Armstrong mentioned Bitcoin in a video posted to his highly popular YouTube channel “BitBoy Read more

Binance Coin, Dogecoin, SushiSwap Price Movement Analysis for 4th April, 2021

Binance Coin predicted that fresher record thresholds will be set in the coming days due to solid technicals. Following a Read more

Tron Price Movement Analysis for 4th April, 2021

In the cryptocurrency industry, excessive uncertainty has had a long-term effect on the price of the digital commodity. This uncertainty Read more

Ethereum Price Movement Analysis for 4th April, 2021

Ethereum, the second-largest cryptocurrency, has entered a volatile zone, which could drive the digital asset's price even higher. In the Read more

Chainlink, DigiByte, Enjin Coin Price Movement Analysis for 4th April, 2021

Bitcoin faced some selling pressure just above the $59k mark, leading it to slip to $56,600. The majority of the Read more

Bitcoin fell by more than 4%, causing many other cryptocurrencies to plummet drastically.

The world's most expensive cryptocurrency fell 4.1 percent, bringing several other coins down with it, sending the economy into the Read more

Leave a Reply

Contact Us