Ethereum Could Outperform Bitcoin, Why ETH Could Rally To $1,500

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Ethereum remains in a range above the $1,300 support against the US Dollar. ETH price is likely to gain momentum above $1,400 and $1,450 resistance levels in the near term.

  • ETH price traded as high as $1,438 and before it corrected lower against the US Dollar.
  • The price is consolidating above the $1,320 support level and the 100 simple moving average (4-hours).
  • There is a key bullish trend line forming with support near $1,295 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair is likely to accelerate higher after it breaches the $1,400 and $1,430 resistance levels.

Ethereum’s Ether Signaling Fresh Rally

This past week, bitcoin and ethereum saw a steady increase above $1,300 and $35,000 respectively against the US Dollar. BTC trimmed all its gains, whereas ETH remained well bid above the $1,300 support zone.

The recent high was formed near $1,438 before the price corrected lower. There was a break below the $1,380 support level. Ether price even traded below the 23.6% Fib retracement level of the upward move from the $1,207 swing low to $1,438 high.

Ethereum

Source: ETHUSD on TradingView.com

However, the price is consolidating above the $1,320 support level and the 100 simple moving average (4-hours). There is also a key bullish trend line forming with support near $1,295 on the 4-hours chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the upward move from the $1,207 swing low to $1,438 high.

On the upside, the price is facing hurdles near the $1,400 and $1,430 levels. A successful break above the $1,400 and $1,430 resistance levels could open the doors for a sharp increase in the coming sessions. In the stated case, the price could test the $1,500 resistance zone.

Dips Supported in Ether (ETH)?

If Ethereum fails to clear the $1,400 and $1,430 resistance levels, it could start a downside correction. The first key support on the downside is near the $1,300 level and the trend line.

A downside break below the trend line support may possibly call for a test of the $1,260 support level and the 100 simple moving average (4-hours). Any more losses could lead ether price towards the $1,200 support zone.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.

4 hours RSI – The RSI for ETH/USD is just above the 50 level.

Major Support Level – $1,300

Major Resistance Level – $1,430



by Aayush Jindal on January 31, 2021 at 11:48AM

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