Ethereum Price Analysis: ETH On Upwards Surge Despite Flashing Death Cross
Daily Ethereum ETH Price Forecast
- Ethereum price had 12 straight bullish sessions.
- The MACD indicates increasing bullish market momentum.
Ethereum price is in the middle of a bullish rally which has seen it touch and retreat from the $2,600 psychological level. Before this, ETH fell from $2,325 to $1,775 between July 7 and July 20 and flipped the 20-day and 200-day SMAs from support to resistance. It also reversed the parabolic SAR from positive to negative.
Ethereum Price Retreats From $2,600 Level
Ethereum has done 12 consecutive bullish sessions between July 21 and August 1, jumping from $1,775 to $2,585. During this jump, ETH managed to flip the 20-day, 50-day, and 200-day SMAs from resistance to support. Along with that both the MACD and Parabolic SAR were reversed from negative to positive. The 200-day SMA has crossed over the 50-day SMA to form a death cross – a heavily bearish signal. However, XRP bulls have been in full control, despite this.
Image: ETH/USD daily
Looking at IntoTheBlock’s IOMAP, the Ethereum price faces immediate resistance at $2,700. Previously, at this level, almost 520,000 addresses had purchased ~845,000 ETH tokens.
Will Ethereum Overpower BTC? These Analysts Believe So
Ethereum (ETH) is the second-largest cryptocurrency by market cap and the number one coin going head-to-head with Bitcoin. A panel of experts believes that ETH could potentially double its current price to about $4,600 by the end of the year. They are confident that Ethereum will potentially leave bitcoin in the dust over the coming months.
One of the panel members is Daniel Polotsky, the founder of the crypto ATM company Coin Flip. In a recent interview, he said:
"Ethereum’s price largely follows bitcoin’s halving cycles, although that relationship may begin to decouple as time goes on, and as Ethereum continues to develop use cases that bitcoin cannot achieve. Its price may grow at a faster rate than bitcoin."
One of the reasons Ethereum remains so popular has to do with its smart contract capabilities. The network offers the technology necessary to create a wide array of decentralized applications and many of the new digital tokens entering the space.
Furthermore, ETH has undergone a few changes with the release of ETH 2.0, set to occur later this year. For one thing, several Ethereum tokens have been put out of commission to be burned, which according to co-founder Vitalik Buterin, will make the network safer and far more efficient.
Forrest Przybysz, a senior crypto analyst at Token Metrics, said:
"Ethereum’s proof of stake later this year or early 2022 will result in Ethereum’s supply becoming deflationary and will be equivalent to multiple bitcoin halvings [cuts to bitcoin’s supply of new tokens] in terms of supply restriction. This will make it a better store of value than bitcoin in addition to all the utility it provides that bitcoin does not have."
Notably, not everyone on the panel was positive about Ethereum, and some even felt that the asset would never amount to anything when compared with Bitcoin. John Hawkins, a lecturer at the University of Canberra in Australia, stated:
"I think Ethereum is a speculative bubble and will get dragged down by bitcoin."
Ethereum Price Is Expected To Reach These Levels
If Ethereum price manages to break past the $2,700 resistance barrier, it could potentially reach the $3,000 psychological level.