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Parabolic rally becomes 'a real possibility' when Ethereum costs $ 547 The price of ether ( ETH ) of the original cryptocurrency of


Ethereum has crossed $ 547. Following the breakout, traders are pointing to several major resistance levels in the near term. [१ ९ ६५ ९ ००२] In the short term, traders generally support $ 600 as the major resistance area for ether as it marked the beginning of the recessionary trend starting in May 2016. In this way, $ 600 can act as a area for sellers.

However, traders also believe that if Ether surpasses $ 600, it will enter the $ 700 to $ 900 range. On top of this, there is little opposition until the all-time high.

Ether's weekly price chart. Source: TradingView.com

Ethereum's outlook remains positive

The Ethereum network has seen many catalysts coming into play in recent months. [१ ९ ६५ ९ ००२] First, the Ethereum 2.0 network upgrade is progressing, as a large number of ether deposits continue to contract addresses. [१ ९ ६५ ९ ००२] Ethereum 2.0 is a significant upgrade to move Ethereum from a proof-of-work (PoW) consensus algorithm to a proof-of-stake (PoS) algorithm. Essentially, it removes miners from the network to optimize transaction settlement.

Second, on-chain data suggest that whales continue to accumulate ether. This trend coincides with a decline in ether exchange reserves, particularly for more holders who deposit digital assets to the Eth2 deposit contract. Sentiment researchers wrote when Ether initially ran out of $ 500:

"Following in the footsteps of $ BTC, $ ETH has hit a 29-month high of $ 509. June 21 , 2018 The price was higher for the # 2 market cap asset last seen. # Ethereum's top 10 holders combined with coin supply on the exchanges have boosted this rally. "

Strong for Ethereum Traders are optimistic about the price trend near ether, the basic catalyst and the favorable technical structure for ether.

] Michael van de Pope, a full-time trader on the Amsterdam Stock Exchange, stated a pullback is likely at $ 600. But, on top of this, the merchant said that the road from $ 900 to $ 1,000 is open.

Potential ether value cycle with resistance level. Source: TradingView, Michael van de Poppe

A fraudulent trader known as "Rookie" stated that ETH was likely to be $ 700 by the end of the year. ETH has seen a parabolic uptrend since July 2020, increasing the possibility of a longer rally beyond 2021.

Will ether follow bitcoin price?

During the 2017 rally, when bitcoin was near $ 20,000 in major exchanges, altcoins were relatively high. Stagnant. Ether and other major cryptocurrencies saw explosive price movements in January 2018, after BTC ended.

Looking afresh in 2021, this would be in line with the trend seen in the post-2017 cycle. While there is little historical data to suggest that ether and altcoins will follow the same trend three years ago, the narrative of Alto's rally of January 2021 remains strong.

For Ether to see a longer updown, it would first need to be recaptured. Many analysts view this level as a near-term threat, as is the $ 600 resistance level.