Ethereum Price Analysis: ETH breaks past key resistance on path to $600
Daily Ethereum ETH Price Forecast
- Ethereum has managed to break above the $590 resistance.
- Investor behaviour at the $600 psychological level will determine future price action.
Ethereum is on the verge of a significant test right now, which could determine its potential future. Following a bullish weekend rally, ETH managed to climb from $545 to $595. As it approaches the $600-mark, it will be interesting to note how the holders react to this psychological level.
Ethereum breaks above $590 resistance
In a previous report, we pointed out the $590 resistance as a key level that needs to be broken for the smart contract platform to enter the $600 zone. This weekend’s bullish gave ETH enough momentum to break above the $590 resistance, along with the 20-day SMA. The MACD indicates that the market momentum is looking to reverse from bearish to bullish.
Image: ETH/USD daily chart
The 4-hour chart adds further credence to our bullish outlook. As we pointed out yesterday, ETH/USD has managed to break above the falling wedge pattern and the 20-bar, 50-bar, and 200-bar SMAs. However, it faced resistance at $592. After some struggle, ETH has managed to break above it.
Image: ETH/USD 4-hour chart
Now the bulls will need to overcome resistance at $620 to initiate its move into the $700 zone. Do note that this level had previously inhibited the price twice (in the daily chart) So it will be interesting to see how the price reacts this time around. Things could be different this time around as the Ethereum network is stronger than ever before.
New Ethereum addresses hits 35-month high
According to Santiment, a prominent analytics firm, the number of new addresses within Ethereum has reached a 35-month high. These new addresses are also iterating more heavily with the network, which is a powerful sign.
The firm said:
“The amount of new #Ethereum addresses hit a single-day, 35-month high Saturday. Our network growth metric picked up ETH reaching 177.5k addresses created. Notably more addresses interacting on an asset’s network is a very promising indicator for bulls.”
A growing network is a stronger network, which solidifies our overall bullish outlook.
ETH to soon be traded DBS Bank’s digital exchange
The DBS Bank of Singapore has recently announced that trading at its new digital assets exchange - DBS Digital Exchange - will begin next week. The exchange will provide tokenization of securities and other assets in addition to bank-grade custody for cryptocurrencies.
The new exchange will also enable spot exchanges from fiat currencies to cryptocurrencies and vice versa, as per a Coindesk report. DBS Group CEO, Piyush Gupta, said that four fiat currencies (SGD, USD, HKD, JPY) would be tradable against cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and XRP.
We are ready to begin crypto trading as early as next week. Security token offerings may take a month or two to get started – but in summary, we are ready to go.
The exchange comprises a regulated platform for the issuance and trading of digital tokens backed by financial assets. These include private equity funds, bonds and shares in unlisted companies. The custody services are said to be bank and institutional grade. Gupta added that the DBS exchange will only be open to institutional clients and accredited investors.
Singapore’s SGX stock exchange owns 10% of the new exchange. Loh Boon Chye, CEO of SGX, said in a statement:
We are excited to apply our strengths in market infrastructure and risk management to this venture. There are significant opportunities to bring trust and efficiency in price discovery to the global digital assets space. We look forward to working closely with DBS to advance Singapore’s standing as a multi-asset international financial center.
Key price levels to watch for Ethereum
The most critical zone to watch out for is the $600 psychological level. Since it's a nice, whole number, the investors may treat it as a sell-off or a buy-in point. In the latter case, the smart contract platform needs to overcome $620 resistance to continue its surge into the $700 zone.