Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Ethereum‘s price has been hiking exponentially right from the start of the year. At the time of writing, the altcoin was skirting its $2,000 short-term resistance, with ETH well in line to breach it soon. Doing so would allow ETH to climb again to register yet another ATH on the price charts.
At the time of writing, ETH was trading at $1,997 with a market capitalization of over $229 billion. In fact, the last 7 days saw the coin surge by over 22 percent, with the crypto recording a 24-hour trading volume of $32 billion.
Ethereum 1-day chart
Source: ETH/USD, TradingView
On the longer timeframe, it is evident that ETH has been part of an ascending channel trend right from the start of the year. Interestingly, if ETH breaches the $2k-resistance and flips it to support, this is going to be part of the trend as the price continues within its range.
There seemed to be strong resistance for the coin around $2,060 and given the bullish momentum in the market, this may soon be flipped to support. If the coin falls prey to yet another price correction, there will be two key support levels at $1,665 and $1,557, both of which can help the price. However, a move to such a low range didn’t seem very likely, at press time.
Rationale
The technical indicators for ETH looked promising. There was adequate bullish momentum in Ethereum’s market and the MACD indicator had undergone a bullish crossover. The Signal line fell below the MACD line and indicated that the price rise is likely to continue. The RSI indicator also echoed a similar trend as it continued to head closer to the overbought zone.
Conclusion
A new ATH for Ethereum, the world’s largest altcoin, seemed very much on the cards, at press time. ETH is likely to continue within its ascending trend and this may result in the price moving towards the $2,060 – $2,264 price range. The upper limit, in this case, would be close to the centerline of the ascending channel and the altcoin may see greater pressure at that price point.
