Ethereum has been one of the most highly talked about cryptocurrencies in 2020. Apart from being the 2nd largest cryptocurrency by market capitalization, its successful launch of Eth2.0 helped in pumping its price upwards. Although Ethereum is still USD 200 away from its previous all-time high price of USD 1,416, Ether managed to surpass its previous ATH market cap. In the past 24 hours, it has climbed more than 6%, while its peer Bitcoin did 0.25%. Will Ether manage to break past ATH prices or will it tumble back down like the previous events of 2017?
Ethereum Price showing STRONG Momentum
Ether’s price was going upwards on a steady uptrend ever since the Covid-19 crash back in March 2020. Prices kept showing strength and price barriers kept being broken upwards, all until January 3rd 2021, when the final price barrier of USD 780 was broken.
In a previous article, we stressed the importance of that specific price area, as a break around that price would send Ether’s price shooting all the way to USD 1,000 and that was EXACTLY what happened.
The price not only broke the USD 1,000 mark but went on to reach USD 1,350. At that point, it was obvious that the price would adjust and take a breather, following exactly the 78.6% level of the Fibonacci Retracement (fig.2). Once prices hit the retracement level, the momentum picked up, and current prices are moving upwards.
Ethereum Prices poised to CRASH?
If we look and compare the current trend that happened in the current and previous weeks to what happened back in 2017, we can see strange similarities (fig.3):
- Momentum starting around USD 100 prices
- A slope upwards with the same trend angles
- A similar high price area around USD 1,400
- Similar price resistances alongside the uptrend
- 4 consecutive months of price jumps
- Price jumps happened at the EXACT same months of the year
Are we bound to witness yet another price crash similar to 2017? Well, it gets a bit more complicated than a “yes or no” kind of answer:
Currently, there are whole new markets (like the DeFi market) that base on the Ethereum network, contrary to back in 2017 when it was just a concept boasting “smart contracts” with little to no ACTUAL projects. Also, there is a huge market acceptance of cryptocurrencies worldwide, especially from Big Tech and Big Fund Investors who are actively purchasing Ethereum along with other cryptocurrencies…Heck, even banks are projecting higher crypto prices and recommend owning them, in a bid to replace gold and other commodities.
It is safe to say that today’s crypto market is no 2017. Maturity can be seen everywhere, from running projects to high caliber investments…It’s all there to push the market to further highs, establishing the crypto market well along with traditional finance. With just a little more push of USD 200, Ether will reach again its previous all-time high. What’s more important though, is staying there and climbing higher.
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Rudy Fares
