Parabolic rally ‘is a real possibility’ after Ethereum price hit $ 547

The price of Ether (ETH), Ethereum’s native cryptocurrency, exceeded the $ 547 level. After the breakup, traders are signaling several key short-term resistance levels.

In the short term, traders generally envision $ 600 as the main resistance zone for Ether, as this level marked the beginning of a downtrend in May 2018. As such, the $ 600 could act as a áArea of ​​interest to sellers.

But, traders also believe that If Ether breaks above $ 600, it would likely enter the $ 700 to $ 900 range. Above that level, there is little resistance to the all-time high.

Ether price weekly chart. Source: TradingView.com

Ethereum’s outlook remains positive

The Ethereum network has seen numerous catalysts come into play in recent months.

First, the Ethereum 2.0 network update is progressing, as a large amount of Ether continues to flow in the direction of the deposit contract.

Ethereum 2.0 is an update that will move Ethereum from the Proof of Work (PoW) consensus algorithm to the Proof of Stake (PoS) algorithm. Essentially, it removes miners from the network to optimize transaction settlement.

Second, on-chain data shows that whales continue to accumulate Ether. This trend coincides with a drop in exchanges’ Ether reserves, particularly as more holders deposit the digital asset in the Eth2 deposit contract. Santiment researchers they wrote when Ether broke over $ 500:

Following in the footsteps of $ BTC, $ ETH has reached a 29-month high of $ 509. June 21, 2018 was the last time the price was this high for asset # 2 by market cap. The rise of the top 10 #Ethereum holders, combined with the supply of the coin on exchanges, has fueled this rally. “

Ethereum’s strong fundamental catalysts and Ether’s favorable technical structure make it traders are optimistic about the trend of the price of Ether in the short term.

Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said that a pullback is likely to occur at $ 600. But, above that level, the trader said that the path to $ 900 or $ 1,000 is clear.

Potential Ether price cycle with resistance levels. Source: TradingView, Michael van de Poppe

A pseudonymous trader known as “Rookie” said similarly ETH is likely to hit $ 700 by the end of the year. ETH has seen a parabolic upward trend since July 2020, increasing the likelihood of a prolonged rally until 2021.

Will Ether Follow in the Footsteps of Bitcoin Price?

During the 2017 rally, when Bitcoin was close to $ 20,000 on major exchanges, altcoins were relatively stagnant. Ether and other major cryptocurrencies saw explosive price movements in January 2018, after BTC hit its all-time high.

Ether experiencing renewed momentum in 2021, would go hand in hand with the trend that BTC saw in the post-halving cycle of 2017. Although there is little historical data to suggest that Ether and altcoins will follow the same trend as three years ago, the narrative of an altcoin rally in January 2021 remains strong.

For Ether to see a prolonged uptrend, it would first need to rebound to the $ 600 resistance level, as many analysts see this level as the main threat in the short term.

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