- Summary:
- Ethereum price has been wavering in the past few days. It has struggled to move above $600 but a technical analysis shows that the price will soar to $700
Ethereum price has been a bit boring in the past few days. Today, the price is trading at $600, which is slightly lower than last week’s high of $635. It is also significantly higher than November 26 low of $478.
Ethereum has had a relatively successful year. The price has jumped by more than 580% from the year-to-date low of $88. That has made it a better performer than Bitcoin and other major digital currencies.
Further, the volume of ETH traded every day has jumped mostly because of the Decentralised Finance (DeFi) industry. For starters, DeFi is an industry that is decentralising the financial industry by helping people from around the world start fintech companies. In total, the total value locked in DeFi has increased from less than $1 billion in January to more than $14.7 billion.
In addition, Ethereum price has jumped because of the recent successful launch of ETH 2.0 phase zero upgrade. This upgrade will make the network faster, more user-friendly, and safer.
Meanwhile, according to Glassnode, more people are buying or using ETH. In their report, the number of Ethereum addresses with 1ETH have soared to more than 1.17 million, which is an all-time high. At the same time, another report showed that the currency’s realized price has shot to $287, which is the highest it has been in two years.
For starters, the realized price refers to prices that are actively used in the market. Additionally, the overall weaker dollar has helped push Ethereum price higher.
Ethereum price technical outlook
On the four-hour chart, we see that Ethereum price has been struggling after it crossed the important psychological level of $600. The price remains above the 25-day and 50-day simple moving averages. Most importantly, it is above the ascending trendline that connects the lowest levels in March, July, and September.
Therefore, like I had predicted a few weeks ago, there is a possibility that the price will continue rising and possibly hit the next target at $700. On the flip side, a sharp decline below the important support at $475 will invalidate this trend.
ETH technical chart
