Ethereum Price Forecast: ETH Breaches $700 Psychological Level
Daily Ethereum ETH Price Forecast
- ETH bulls have remained in control for five straight days.
- The bulls face resistance at the $750-line.
Ethereum bulls have remained in control of the market for five straight days as they breached the $700 psychological level in the early hours of Monday. The last time the buyers have remained in control for at least five days was back in October 2020.
Ethereum Technical Analysis
After a sharp drop on December 23, wherein the asset dropped from $640 to $585, the buyers have managed to regain full control of the market. Over the last five days, the price has gained enough momentum to reach the $700 psychological level.
Image: ETH/USD daily chart
Looking at the price history, one can see a resistance barrier at $750 (as per price history). The buyers will need to shatter this level to reach $800. However, bears can still play spoilsport and ruin the party. The relative strength indicator (RSI) is about to creep into the overbought zone, while the 4-hour price is trending above the Bollinger Band. Both these signs show that the asset is presently overvalued and could face a bearish correction soon.
Image: ETH/USD 4-hour chart
If the correction does happen, the $660 support line needs to hold firm to prevent a drastic downfall. Failing that, the buyers have to make sure that the 20-day SMA ($615) doesn’t flip from support to resistance. Otherwise, the price will likely drop below the $600 psychological level.
Investing Giants To Invest In ETH?
BlackRock, one of the world's biggest investment managers, is looking for a Blockchain Lead in their investments division in New York. By blockchain, the company is referring to crypto-assets evaluation rather than the blockchain technology itself. In the job description, BlackRock outlined:
Must have 1 year of experience in: articulating the technological foundations of blockchain technology including cryptographic hash functions, distributed network consensus mechanisms, and public-private key cryptography; devising and articulating fundamental valuation methodologies for crypto-assets; evaluating game theory and decentralizing governance models associated with blockchain technology; and working with key drivers of blockchain networks’ design and their impact on the four key dimensions of blockchain performance including speed, scalability, privacy, and security.
BlackRock will also accept an individual with a Bachelor’s degree or equivalent in one of the mentioned fields and 6 years of experience in the above-listed skills. In essence, the company is looking for someone who can devise and articulate “fundamental valuation methodologies for crypto-assets.” This means that they should know what relationship there may be between price and transactions or fees or inflows and outflows to/from exchanges.
BlackRock’s website specifies that they’re “investing on behalf of our clients, from large institutions to parents and grandparents, doctors and teachers who entrust their savings to us.” BlackRock’s CEO, Laurence Fink, recently suggested that Bitcoin can rival the dollar as a reserve currency.
Ethereum Key Price Levels To Watch For ETH
The bulls have to flip the $750 line from resistance to support. If they manage to do that, they should be able to conquer the $800 psychological level.
If a bearish correction does occur, the two levels to watch out for will be the $660 support line in the 4-hour chart and the 20-day SMA. Breaking below these zones will be catastrophic for the smart contract leader.