Ethereum Price Analysis: ETH Is Trending Between Strong Levels
Daily Ethereum ETH Price Forecast
- Previously, the Ethereum price had flipped the 20-day SMA from support to resistance.
- ETH has faced rejection at the $1,650 resistance barrier.
On February 22 and February 23, the Ethereum price dropped from $1,935 to $1,575, losing nearly $350 in its overall valuation. As things stand, ETH is hovering between two strong levels. Let’s take a closer look with technical analysis.
Ethereum Price Faces Heavy Rejection At $1,650
Following a brief bullish respite this Wednesday, the sellers were able to take back control in the early hours of Thursday. As things stand, ETH is presently trending for $1,615. Due to this recent dip, the relative strength index (RSI) has dropped from the edge of the overbought zone to the neutral zone.
Image: ETH/USD daily
The Ethereum price is currently hovering between strong resistance at $1,650 and support at $1,600. Previously, at $1,650, 161,500 addresses had purchased nearly 9 million ETH tokens. Visually, this level seems strong enough to absorb a lot of buying pressure.
Pantera Capital: Ethereum Price To Reach $18,000
Joey Krug, the co-chief investment officer of Pantera Capital, recently said that Ethereum has huge upside potential currently. In a blog post, Krug mentioned that Ether’s dominance in smart contract transactions is the main factor driving growth.
Krug noted that the majority of the value in the decentralized finance (DeFi) is transacting on top of smart contracts written on Ethereum. He added that Ethereum revenues have surged by over 400x since the start of 2020.
Even after its recent run-up, it still trades at a P/S ratio of 40x, which will become earnings for ETH stakers when value switches to Ethereum 2.0. Revenue on Ethereum has grown over 400x since January 2020.
With the tailwinds driving ETH, Krug said that he believes the asset could soar as high as $18,000 in the present bull run.
It’s not entirely crazy to see Ethereum being able to 5–10x from here, especially when compared to traditional equities markets…As the market gains confidence that DeFi is here to stay and isn’t a fad, multiples will go up too, and things will begin to be valued by price/revenue/growth in DeFi.
Ethereum Price Is Expected To Reach These Levels
The Ethereum price will probably keep trending horizontally between the $1,600 and $1,650 price levels.