Ethereum Price Prediction: ETH Retraces From $1,100 Psychological Level
Daily Ethereum ETH Technical Analysis
- Ethereum has flashed a sell signal with a green-nine candlestick in the TD sequential indicator.
- The 4-hour chart shows a key support zone at $1,040.
Ethereum found support at the 20-day SMA around Christmas and jumped up from $585 to $1085, adding nearly $500 to their overall valuation. Let’s do a technical analysis to find the price targets for the smart contract platform leader.
Ethereum Goes Back Above $1,00 Following Brief Dip
Following an exceptionally bullish Sunday, the bears stepped back in this Monday to correct the overall price. This Monday, the price reached an intraday high of $1,175 this Monday before dipping to lows of $885. Since then, ETH has corrected itself to $1,075.
Image: ETH/USD daily chart
Looking at the 4-hour chart, we can see that price was trending above the Bollinger Band but found resistance at the $1,040 wall. After repeated rejections, the price finally managed to flip the resistance to support, a significant win for ETH. The MACD also shows sustained bullish momentum, so further growth is expected.
Image: ETH/USD 4-hour chart
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) helps you visualize strong resistance and support levels. The price is sitting below a strong resistance wall at $1,100. Previously at this level, 225,0000 addresses had purchased 142,000 ETH tokens. Upon conquering this, the price should have smooth sailing till $1,200 before it meets another robust resistance zone.
On the downside, the price is supported by several healthy support walls.
Ethereum Co-Founder Reveals ‘Underrated’ Ethereum Bull Run
2020 has been an eventful year for both Bitcoin and Ether, with the assets soaring 300% and 600% over the last 12 months, respectively. However, Ethereum co-founder Vitalik Buterin said that he thinks the rally is an “underrated" bull case for crypto.”
In a 2020 summary blog post, while referring to the total value of the world's mined gold, he wrote:
One of the more underrated bull cases for cryptocurrency that I have always believed is simply the fact that gold is lame, the younger generations realize that it's lame, and that $9 trillion has to go somewhere.
Bitcoin's popularity as "digital gold" has increased in recent months, supported by many investors that have named the coin as an emerging inflation hedge. Several surveys also indicate that Bitcoin, Ether and other cryptocurrencies are older than other groups.
[we’re now in] a world where blockchains and cryptocurrencies are well poised to play an important part, though for reasons much more complex than many people think, and having as much to do with cultural forces as anything financial. public-blockchain-based solutions [will] just keep quietly moving forward and gaining actual adoption.
Fred Wilson, a venture capitalist, outlined his predictions for the coming year in a recent blog post:
I believe that governments will respond to all of these economic challenges by continuing to print fiat money without restraint and by taxing and regulating innovative new companies to protect old and dying companies.
Key Price Levels To Watch For ETH
The upside target for Ethereum is at $1,100. This is a strong barrier that needs to be conquered by the price. On the downside, the $1,040 support wall seems healthy enough to keep the price up.