The world’s second-largest cryptocurrency Ethereum (ETH) has been testing investors’ patience for quite a while! After hitting its new all-time high above $1450, ETH has been largely consolidating between $1350-$1400 levels.
Interestingly, this consolidation can lead to a major breakout above the all-time high very soon. The ETH graph at this stage exactly resembles BTC price movement below $20,000 levels in December 2020. Well, it suggests that ETH is poised for a solid breakout and possibly we can see ETH price literally doubling from the current levels.
#Bitcoin struggled to break the 20K ATH for 3 weeks, then doubled in price in a brief period.
— The Moon 🌙 (@TheMoonCarl) January 30, 2021
Also, the recent growth of the crypto DeFi market is positive news for ETH investors. Another interesting fact is that ETH is all set to register its highest monthly close ever.
$ETH is about to have its highest monthly close EVER.
February and beyond is going to be one hell of a ride for altcoins.
The chart speaks for itself. pic.twitter.com/1lBEoD96p2
— Simon Dedic (@scoinaldo) January 31, 2021
Ethereum (ETH) Preparing for a Bitcoin-Like Breakout Above Its All-Time High
Dips Supported in Ether (ETH)?
If Ethereum fails to clear the $1,400 and $1,430 resistance levels, it could start a downside correction. The first key support on the downside is near the $1,300 level and the trend line.
A downside break below the trend line support may possibly call for a test of the $1,260 support level and the 100 simple moving average (4-hours). Any more losses could lead ether price towards the $1,200 support zone.
4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is just above the 50 levels.
Major Support Level – $1,300
Major Resistance Level – $1,430
If History Rhymes, Ethereum Could Be on the Brink of Rallying to $3,000
Ethereum has seen some bullish price action throughout the past several hours, with bulls sending its price rocketing up to highs of $1,440 in tandem with Bitcoin’s surge to $38,500.
The market’s immense strength that came about due to this movement is showing few signs of wavering, despite a few pullbacks.
One analyst is now noting that ETH could be on the cusp of seeing an explosive movement that sends it to fresh all-time highs of around $3,000 before it faces any massive resistance.