Ether price has been on a strong uptrend in 2020. After the COVID-19 crash back in March, major news advancement specifically with Ether 2.0, paired with strong price-action movements led the price of Ether to reach new highs and break major resistance key areas.
Quick recap – Technical analysis
Ether recovered ever since the 24th of September from a low price of USD 315 to reach the current all-time high price of 440, up 40%.
After breaking the first time the psychological level of USD 400, Ether went into a short term downtrend, where we mentioned previously that any break of the higher channel band would signal a reversal of prices. (fig.1)
Once the channel was broken from the upper band, the price shot up, kept a strong momentum, and formed yet another short term uptrend formation (fig. 2). The MA cross shows a strong willingness of the trend to keep its upward direction, though the RSI level signals an extended overbought level (RSI 70). This might be a sign of a price adjustment in the short term.
Ether Price Analysis – Risk management levels
Ether is seen on an uptrend. Major news like the PayPal announcement, speculations in the launch of Ether 2.0, and US elections… All contributed to the increase in the Ether demand. As traders though, it is very important to always have a backup plan and manage our risk.
Ether’s psychological price level of USD 400 is still a very important level, but another very noticeable level is the USD 385 area, where prices were seen fluctuating around that level for quite some time now.
An adjustment in price will definitely bring the price down, most probably due to normal trading events like profit-taking, market price adjustments, people moving from one coin to another…Those are all normal market events that let the price “breath” for a while before continuing on the longer time frame.
The most important event that will make sure to keep Ether’s momentum is the ETH2.0 deposit contract, which will technically bring a shift towards the next level of the Proof of Staking consensus mechanism. This major news should make Ether’s price reach new highs and continue on its long term uptrend, but till December 1st, traders should always stay wary of any price adjustments in the short term.
A general look at the Top 10 Cryptocurrencies
In the last 24 hours, all top 10 cryptocurrencies (except Tether which is a stable coin) were up significantly. This is all going in tandem with legacy markets, most probably affected by the US elections:
- Bitcoin (BTC) : + 5.94%
- Ether (ETH) : + 8.98%
- Tether (USDT) : – 0.05%
- Ripple (XRP) : + 7.95%
- Bitcoin Cash (BCH) : + 5.18%
- Chainlink (LINK) : + 12.05%
- Binance Coin (BNB) : + 7.47%
- Litecoin (LTC) : + 11.56%
- Polkadot (DOT) : + 9.94%
- Cardano (ADA) : + 13.2%
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Rudy Fares