Ethereum resumes the uptrend following support at $1,200.
Ether keeps investor interest at the peak with price projections between $1,500 and $3,000 in the near term.
Ethereum must hold above the 50 SMA on the 4-hour chart to sustain the uptrend.
Ethereum, the largest altcoin and the leading smart contract token has kept its investors on the toes as they wait for the ultimate breakout to levels above $3,000. Some analysts have recently predicted that Ether will spike to $10,500 by the end of 2021.
In the previous week, Ethereum went ballistic, leaving Bitcoin behind, and charted its path to a new all-time high of $1,481 (Coinbase). However, a correction occurred soon after. The support at $1,200 came in handy, as reported.
ETH rebounded, aided by the buyer congestion at the 100 Simple Moving Average on the 4-hour chart. A more comprehensive glance at the cryptoasset’s price actions illustrates the trading in an ascending parallel channel.
Amid the ongoing recovery, Ethereum stepped above the channel’s middle boundary resistance. The gulls have eyes on $1,400 in the near term, but Ethereum is exchanging hands at $1,345. The mid boundary of the channel provides short-term support in conjunction with the 50 SMA.
ETH/USD 4-hour chart
For now, the least resistance path is upwards, as reinforced by the Moving Average Convergence Divergence or MACD. The MACD line has just crossed above the signal line, which is a call to buy. However, it essential to wait for a confirmed divergence before going all-in on ETH.
Trading above $1,400 could help confirm the expected upswing to $1,500 (new record high). Note that Ethereum’s upswing is unlikely to stop at $1,500, especially with CME futures scheduled for launch on February 8.
Realize that a correction under the channel’s middle boundary will confirm a correction that may send ETH to test the support at the 100 SMA or the recent support at $1,200.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org