Ethereum Price Prediction: ETH eye $600 after charting golden cross
Daily Ethereum ETH Technical Analysis
- Ethereum faces two critical resistance at $615 and $590.
- The 50-bar SMA has crossed above the 200-bar SMA in the weekly chart.
As with the rest of the crypto market, Ethereum had an extremely bullish weekend after bouncing up from the $545 support line. The price gained enough ground and fell just a hairline short of crossing the $600 psychological level. However, several indicators are flashing positive signs for the smart contract leader.
Ethereum charts golden cross
Towards the end of November, Ethereum flashed a green-9 candlestick in the TD sequential indicator, which prompted a downtrend from $602 to $586. However, it looks like the worst is behind us, and we can expect a resurgence to $600.
Image: ETH/USD weekly
As is evident in the weekly chart, the 50-bar SMA has crossed above the 200-bar SMA to chart a golden cross pattern. This is one of the most bullish signals in technical analysis, which bodes very well for Ethereum’s future price action. The daily price chart helps us to identify critical levels.
Image: ETH/USD daily
As per the daily chart, the price bounced up from the $545 support wall and has managed to flip the 20-day SMA from resistance to support. While this is noteworthy, the key level for Ethereum is the $615 resistance line. As you can see, this resistance barrier has managed to push the price down on three separate occasions on November 24, November 30, and December 4.
Ethereum encounters short-term resistance
Image: ETH/USD 4-hour
While the big picture looks pretty positive for Ethereum, the 4-hour chart suggests a short-term obstacle that the price needs to cross over. The price had earlier broken above the falling wedge pattern but has since encountered resistance at the $590 resistance line. This line had previously provided strong support in this time frame, which makes it critical for the buyers.
Apple Pay opens up ETH to scores of new investors
Lumi, a cryptocurrency startup, is working to facilitate BTC and ETH purchases through Apple Pay. A new feature in Lumi’s iOS wallet lets users purchase Ethereum and other digital assets through Apple’s renowned payments application.
Lumi wallet users based in the US are limited to $500 purchases per day, $500 per week, and $5,000 per year. Users outside the US are limited to $1,000 purchases per day, $1,000 per week, and $7,500 per year. Notably, the new payments feature is not available for people in Vatican City, Ukraine, Montenegro, Monaco, Malta, Man of Isles, Jersey, Liechtenstein, Romania, Russia, Serbia, China, Taiwan, Macao, and Kazakhstan.
Grayscale boosts Ethereum holdings
Grayscale Investments, the largest cryptocurrency asset manager, recently added around $100 million worth of Bitcoin and Ethereum to its investment portfolio.
According to bybt, the asset manager added 131,402 Ethereum (worth around $74 million) and 1,313 Bitcoin (worth around $24 million) a few days ago. Grayscale’s massive ETH acquisition resonates with the company’s managing director Michael Sonnenshein’s observations. He had earlier said that institutional investors are increasingly seeking exposure to Ethereum.
Over the course of 2020, we are seeing a new group of investors who are Ethereum-first and in some cases Ethereum-only. There’s a growing conviction around Ethereum as an asset class.
Grayscale Ethereum Trust has garnered the attention of a new segment of Ethereum-focused institutional allocators. During 3Q20, over 17% of inflows into the Grayscale Ethereum Trust came from new institutional investors.
Grayscale’s Ethereum assets under management (AUM) has surpassed $1.66 billion, and its Bitcoin AUM has moved past $10.15 billion, as per bybt’s.
Key price levels for Ethereum
There are two critical price levels that ETH needs to conquer to continue its upward trend. The $590 and the $615 line. Upon conquering these two, Ethereum will be able to break into the $700 zone. On the downside, if the price breaks below $545, the next viable support wall is down at the 50-day SMA ($500).