Ethereum Price Prediction: Lack of strong resistance to push ETH above $700
Daily Ethereum ETH Technical Analysis
- ETH has broken up from symmetrical triangle formation.
- IntoTheBlock shows one strong support level at $575.
With Bitcoin reaching uncharted heights,it looks like the rest of the crypto market has also followed suit. Ethereum crossed above $600 this Wednesday and is on the verge of entering the $650 zone. Let’s do some technical analysis and see what’s going on behind the scenes.
Ethereum breaks above triangle
As we mentioned yesterday, Ethereum has been trending in a symmetrical triangle formation. This Wednesday, the price managed to break above the symmetrical triangle and jumped up from $590 to $635.
Image: ETH/USD daily chart
Previously, we had identified $710 as the price target for ETH if it breaks up from the triangle. As of now, it seems like we are well on our way of achieving this target. Our bullish outlook is further justified by looking at IntoTheBlock’s “In/Out of the Money Around Price” or IOMAP. As can be seen, there is a lack of intense resistance levels upfront. This gives the smart contract leader the freedom to fulfil the $710 price target and potentially reach $750.
Image: Ethereum IOMAP
Looking at the downside, there is a healthy support wall at $575. Previously at this level, 907,000 addresses had purchased nearly 12 million Ethereum tokens. This means that if a sell-off does occur, this zone is robust enough to absorb a tremendous amount of bearish pressure.
Grayscale Ethereum Trust goes up by 274% in Q4, 2020
The share price of Grayscale’s Ethereum Trust (ETHE) has tripled in value since the beginning of Q4 2020. On October 1st, the share price of the Grayscale Ethereum Trust (ETHE) was approximately $39. At the time of writing, the same ETHE is valued at $146, signifying a 274% increment in less than three months.
Grayscale noted that one share of their Ethereum trust is allocated 0.09276525 ETH. This means the Grayscale Ethereum Trust’s current share price is 2.7x more than the value of 0.09276525 ETH assigned per share. This could be the first indicator of a potential correction for ETHE. On the other hand, it could indicate that the real Ethereum is undervalued. The ETHE premium rate foreshadows a rally for Ethereum (ETH) above its all-time high of $1,400.
Grayscale appears to be silently accumulating ETH in recent times. Currently, assets under management (AUM) in the Grayscale Ethereum Trust are at $1.73 billion. The company presently holds .94 million Ethereum (ETH).
Key levels to watch for ETH
The most important that the buyers will be interested in is $700. If the holders refuse to sell-off at that level, then a climb above $750 is in the cards. On the downside, the $575 support wall will look to absorb the potential selling pressure.