Ethereum
What’s Next for Ether Prices After Today’s Strong Rises?
Technical analysts have identified key support and resistance levels for ether. (Photo by Thomas… [+] Truutschel/Photo library via Getty Images)
Photo library via Getty Images
Ether had an impressive day, rallying after markets responded to speculation that the U.S. Securities and Exchange Commission (SEC) may soon approve one or more applications for Ether exchange-traded funds (ETFs) in cash.
The world’s second-largest digital currency by total market value reached $3,702.23 today. CoinMarketCapbriefly surpassing the $3,700 level before falling back below that price level.
Going forward, what key support and resistance levels should technical traders watch?
Several analysts gave their views.
“Ether is having a hell of a day!” It’s quickly approaching some major resistance levels,” Brett Sifling, investment advisor for Gerber Kawasaki Wealth and Investment Managementnoted via emailed comments.
“First, we have last month’s highs which should act as resistance at the $3,700 level. If we break above this level, I would expect more resistance in the $4,000 range,” he added.
“A breakout of the yearly highs would provide a strong case for retesting its all-time high of $4,868,” Sifling noted.
The market watcher also highlighted some significant support levels.
“If this breakout fails, we should see near-term support around $3,300 and then again at $3,000. It is important that Ether stays above the $2,800 low, which is the recent consolidation range of the past few months.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capitaloffered an optimistic view of ether, the native digital asset of the Ethereum platform.
“Many crypto investors believe that Ether will continue to appreciate, although it will face strong resistance at the $4,000 level that it last reached in March before falling,” said DiPasquale via email.
If the cryptocurrency breaks this level, it will face another significant resistance level at $4,500, he claimed. If it falls again, the digital asset will encounter support at $3,300.
Grant Tungate, Business Development Manager for Blockforce Capitalalso weighed in, highlighting several important support and resistance levels.
“Key levels to watch in the near term are the new 50d high at ~$3,730 and then the year-to-date high ~$4,090,” he said via email.
“On the downside, the 200d moving average at ~$2,760, which is close to the 3-month low support zone,” Tungate added.
William Noble, who currently serves as director of research and content development for Emerging Assets Groupalso offered technical analysis.
Pointing out that “there was a real breakout today,” he said “support is at 3,482. It is possible that the next target is 4,142 and the ultimate target is 5,463.”
The chart below, which uses Binance price data taken from TradingView, provides a visual explanation:
The main support and resistance levels of Ether
William Noble
Ether is ‘warming up,’ analyst says
Tim Enneking, Managing Partner of Psalionhighlighted the very optimistic outlook for ether.
“Given the aphorism “buy on the rumor, sell on the news” and the fact that the SEC will make an early decision on a spot ETH ETF this Thursday (as far as I know), I think ETH is only warming up,” he said via email.
“Given that the BTC ATH is still fresh on everyone’s mind from March (and potentially about to drop again here shortly), it’s clear that the next resistance level for ETH is 4,084 $ (the most recent two-year high), followed by $4,864 (its ATH),” Enneking added.
“ETH now has massive support at $3,100; the trick will be to move $4,000 from resistance to support. This could well happen in the coming days,” he said.
“If the SEC decision is positive, ETH ATH will likely fall, and $4,000 will become major support at that time.”
Disclosure: I own Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS and SOL.