Ethereum Price Forecast: ETH Extends Symmetrical Triangle Pattern, Bullish Bias Dominates!
Arslan Butt•Wednesday, April 7, 2021•2 min read
The ETH/USD closed at 2117.88 after making a high of 2149.04 and a low of 2042.25. ETH/USD continued its bullish streak for the 8th consecutive session and reached its ATH near $2150 on Tuesday. The second-largest cryptocurrency by market capitalization after Bitcoin has risen more than 40% in the previous eight days. Since the start of this year, ETH has generated about 186% returns so far and this return is even bigger than the return from Bitcoin which is 102%.
The value of the whole cryptocurrency market reached $2 trillion for the first time, and this was driven by the continuous rally in the second-largest crypto coin in the world, Ether. According to a price-tracking website, the crypto market’s market capitalization doubled in just two months due to the increased interest of retail and institutional investors.
The largest currency in the digital market is Bitcoin, which accounts for about 50% of digital currency’s entire market capitalization. This year alone, Bitcoin has seen an increase of 100%. Last month its price reached an all-time high (ATH) of $60,000. However, the recent rise in the entire market cap was driven by the continuous rally in Ether.
Ethereum blockchain is a software platform that enables developers to build apps on top of it. On these apps, users can spend Ether (
ETH). The key feature of Ethereum is smart contracts that can be automatically executed using code. The growing popularity of smart contracts and
DeFi apps increased Ethereum blockchain’s demand and drove its prices high.
The recent craze about the Non-Fungible Tokens (NFT), a new type of digital asset, has also played an essential role in pushing
ETH prices higher as Ethereum has the underlying technology behind NFTs. The recent rally in
ETH could also be attributed to the upcoming planned Berlin hard fork upgrade in the Ethereum network expected to go live on 15th April. This upgrade was previously scheduled to launch in June 2020, but due to concerns over the client diversity on Ethereum, the timeline was extended, and now it will be executed on 15th April 2021.This upgrade is expected to improve the method of adding new transaction types to Ethereum, increase the gas cost for state opcodes, lower the gas cost of the modular exponentiation precompile function, and introduce a new transaction type to lessen the risks of contract breakage.
On the USD front, at 18:37 GMT, the IBD/TIPP Economic Optimism from the US remained flat with the projections of 56.4. At 19:00 GMT, the JOLTS Job Openings for February raised to 7.37M against the forecasted 6.91M and supported the US dollar. The greenback fell to a near 2-week lowest level on Tuesday at 92.32 and supported ETH/USD prices.
Daily Technical Levels
Support Resistance
2085.93 2126.81
2058.68 2140.44
2045.05 2167.69
Pivot Point: 2099.56The
ETH/USD is trading sideways at 2,085, with support at the 2,002 level. Violation of this level could lead the pair towards the 1,883 level, whereas the violation of the 2,135 level could drive the price towards the 2,247 level. The MACD and
RSI levels suggest a bullish trend, along with the 20 & 50 EMA that supports a bullish bias. On Monday, the pair violated the asymmetric
triangle breakout, supporting a bullish bias in
ETH/USD. The bullish breakout of 2,136 levels now can drive buying until 2,247. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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