Ether continues its uptrend thanks to the recent PayPal announcement, breaking the psychological level of USD 400. In parallel, the Ethereum community is growing impatient, still waiting for the official practical debut of Ether2.0 phase 0.
The price of Ether is still well above the yellow trend line, trading at the time of writing at around USD 415. Let’s analyze potential scenarios of what might happen in that white box in figure 1.
Ether Price Analysis – Important levels to watch
Plotting the Fibonacci retracement from the low price of the week all the way to the high of USD 420, important levels of retracements arise (Fig.2). Those levels can be key stop loss areas for day traders:
- USD 407 at 23.6%
- USD 400 at 38.2%
- USD 393 at 50%
The USD 390 price is a strong potential retracement in case momentum didn’t keep up, although so far, the 23.6% level might be a better option for buyers who are just entering the market.
Ether Price Analysis – Potential scenarios
When a sudden increase in prices usually happens, day traders tend to close their positions to pocket in their profits. This leads to a price adjustment, thus the price returning to its normal levels. In figure 3, we show how the price of Ether might retrace back to the 50% levels, then continue its uptrend to reach the USD 500 psychological level.
If the momentum fails to pick up the price to levels between USD 450 and USD 500 in the coming month, we expect a strong price adjustment back to the yellow trend line, and where the red circle is around the USD 355 price level. (fig.4)
Ethereum drops to second place in daily fees generated
The Ethereum blockchain surpassed all cryptocurrencies in daily fees generated earlier this year with the start of Q3 due to the DeFi meteoric boom. Yesterday, Bitcoin managed to snatch that title (fig.6)
To sum up, profit-taking and BTC being in the lead for daily fees generated might show a small market correction for Ether in the short term, but what’s certain is that Ether surpassed all cryptocurrencies in value transfer, which should help push the price further to USD 500 in the medium term.
Stay ahead, stay updated
Rudy Fares
