- Summary:
- Ethereum price just reached the important resistance level of $200 because of strong demand in the futures market ahead of ETH 2.0 launch in a few months
Ethereum price reached $200 for the first time since March as bulls remained in control. The price rose as demand for the currency continued to rise ahead of the ETH 2.0 mainnet launch.
Ethereum rally continues
Ethereum has been on an upward trend since it bottomed at $85 in March this year. The current price means that the price has more than doubled in the past month.
There are several catalysts for this price action. First, the overall mood in the cryptocurrency market has improved since the bottom in March. For example, Bitcoin price has risen from a low of $4,565 to the current high of $7760. This rally is probably because of the decision by Fed to print unlimited amount of money and enthusiasm about halving.
Second, there has been some optimism that the upcoming ETH 2.0 launch will bring more demand to the cryptocurrency. In a recent blog post, Adam Cochran, who is a senior developer at DuckDuckGo listed seven reasons why the protocol will be the next big thing. Some of the seven reasons he talked about were retail Fear of Missing Out (FOMO), increased demand for the currency, whale cycle buying, and burning for flat supply.
Third, there has been increased demand in the futures market. This is according to Ricky Li, the founder of Altonomy, which is a trading company. In an interview with Coindesk, he said that his firm had started to see more ETH buying flow with many large investors coming in.
Some Twitter users have also pointed to technical factors being behind the current rally.
I’m not going to lie, the $ETH charts are looking ridiculously good right now…
With $ETHUSD printing a bull pennant, and $ETHBTC printing an ascending triangle… All after a parabolic move up!
Dips being bought up ferociously.#Ethereum pic.twitter.com/kqq1r3xZ09
— ??? ??? ??? (???? ?? $???) (@JuanDuanDeTuan) February 24, 2020
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ETH/USD price technical outlook
On the four-hour chart, the Ethereum price chart has been moving on an upward trend since March. The ETH/USD pair is now trading slightly above the 61.8% Fibonacci retracement level. This Fibonacci connected the YTD low and the highest point in March. The current price of about 196 is slightly below the day’s high of 200.
As shown below, the pair has also formed an ascending triangle pattern. This means that the bullish trend will continue provided bulls can move above the resistance level at 200.
On the flipside, while the upward trend will continue, it is also possible that the pair will move lower and test the 50-day EMA, which is also the lower line of the ascending triangle.
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