Ethereum and the broader cryptocurrency market have seen mixed price action over the past few days and weeks.
Ethereum Price is Surging
Despite the selling pressure it has experienced at $1,200, ETH beat all odds and surged beyond $1,400, recording a new all-time high at $1,423.38. At press time, the coin is trading at $1,345.23, trying to maintain its domain around the $1,400 mark.
In the last 5-6 sessions, Ethereum started a sharp surge above the $1,200 zone, outperforming Bitcoin. The top altcoin’s price broke a significant barrier near 1,245 USD and 1,250 USD to move further into the bullish area.
The bulls struggled to maintain the uptrend causing a rally above $1,280 resistance. At the beginning, there was a break above a sharply shrinking triangle with resistance approaching $1,245 on ETH/USD’s hourly chart. The price of Ether is now over 10% and is trading well above its 100-hour moving average.
ETH was previously set to form a maximum at around the $1,346 zone, while the price continued to consolidate gains. An initial support on the downside is near $1315 level. It is approaching the 23.6% Fib correction level of the last wave from $1,215 to $1,346.
To the upside, $1345 and $1350 levels had initial barriers. A sharp break above the $1,350 level opened the door for a quick advance. In this case, Ether’s price went on to exceed $1400 and $1420, and beyond before its minor correction. Consequently, the next significant resistance is near the $1500 level.
Analyst Claims ETH Could Rally Higher
In a recent tweet, one analyst stated that he closely monitors Ethereum for $1,250 in support before seeing significant short-term growth.
$ETH / USD
Currently my thoughts on ETH at the moment in terms of lower timeframe momentum. I will get a newsletter out later today going into more detail and what to expect with PA.
The best long R:R right now is PA flipping $1250 into support, looking to remain above $1170. pic.twitter.com/XImruhNHYV
— Cactus (@thecryptocactus) January 17, 2021
He noted that a break above this level could result in an all-time test and that the bulls should survive a break below $1170.
Ethereum is currently trading at significant points. The way it continues to respond to crucial levels just above and below the current price will provide some vital insights in the medium term.
However, not everyone is in such a bullish position. For example, Mike McGlone, BI’s head of strategic strategy for Bloomberg Intelligence, said in his latest report that the advantages of Bitcoin, Ethereum, and Ripple in 2020 show the resilience of fintech in a world increasingly dominated by zero or negative values quantitative help.
According to McGlones, Ether, the coin will trade in the $500-700 range by 2021.
Although most forecasts look somewhat optimistic, cryptocurrency remains volatile as usual. The crypto bull market is known for its quick fixes. With that said, you need to be prepared for a bumpy ride even if ETH is about to hit new record highs.