KEY POINTS
- Ethereum maintains $300 as a major support area
- Continued backtesting of this support level could help Ethereum to reach higher levels
- Ethereum has maintained a price above $300 since July 25
If Ethereum continues to show similarities with previous bull cycle beginnings, it may hit $800 by 2021, analysts say.
ETH closed at $379 Monday but was trading at $374 Tuesday, potentially ending the three-day continued price increase. It had struggled so far to break past $400 but has maintained a price above $300 since July 25.
Analyst Michael van de Poppe said ETH broke out above its 100-week and 200-week moving averages, which led the second largest cryptocurrency to break past $300, a major resistance area, and helped sustain it as support. This level has been the resistance since February 2018, which put ETH to trade between $80 and $300 in almost three years.
Now that ETH has broken past $300, the next key resistance is $500, van de Poppe said in a Cointelegraph report, adding that it will be a slow route to $500 and at least for now, a breakout seems unlikely because the entire cryptocurrency market is still in consolidation mode.
If Ethereum remains above $300, it could very likely be the support level through continued backtesting, which means a continued revisiting of that level without breaking. According to a graph shared by Van de Poppe, $500, $600 and $800 are the defined resistances.
A break above $600 could potentially put Ethereum between $775 and $825. “This would mean that Ethereum could surge more than 100% in the next impulse move, driving the markets to the next level,” Van de Poppe continued, citing that the launch of Ethereum 2.0 could only increase its strength.
The BTH/ETH chart shows the bottom constructions have been made between December and January. Van de Poppe says accumulation during this period has rewarded patient investors in the past.
Some analysts say EtTH must first clear the key resistance level at $385 for it to move to $600. NewsBTC.com said there is a clear bullish trend line forming near $375 in the ETH/USD hourly chart. Still, if ETH clears $385, it can open a push to $400.