Ether Prices Reached A Fresh High Today—What's Next?
Ether prices have been on a tear lately, breaking through $3,200 this morning and then setting a string of fresh highs.
At the time of this writing, the world’s second-largest digital currency by market value was trading above $3,400, according to CoinDesk data.
The cryptocurrency has had a great year thus far, seeing as how it was trading below $750 at the start of 2021, additional CoinDesk figures reveal.
Considering the sharp gains the highly prominent digital asset has experienced lately, several technical analysts offered some perspective on where ether prices might go next.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Short-Term Price Targets
“ETH is going to start moving to $4,000,” said William Noble, the chief technical analyst of research platform Token Metrics.
“It would seem that ETH could move to $4,000, overshoot that level with a spike to $4,300” and then experience a “pause.”
Jason Lau, COO of cryptocurrency exchange OKCoin, offered similar input, providing an upside target of $4,500.
However, he stated that currently, ether was flashing its “highest overbought signal since mid April,” after which it suffered a 20% drop.
Should the digital currency’s price fall back, it should find support between $2,500 and $2,600, said Lau.
Julius de Kempenaer, senior technical analyst at Stockcharts.com, also weighed in, stating that:
“In the case of Ethereum I am watching the area between $2,600 and $2,700 as first support” as well as the “breakout level at $2,000,” which he described as “more important.”
“Given the uptrend that (re-) gained strength after passing $2,000 I would expect any pullbacks to hold in that $2,600-$2,700 area to set a new higher low confirming the current trend.”
After providing some technical levels, de Kempenaer emphasized that he was closely watching the ratio of ether prices to bitcoin prices.
“The chart of the ETH-BTC ratio shows a massive base that unfolded from mid-2018 until recently when it broke the barrier around 0.04 (The price of ETH expressed in BTC) which capped that ratio for almost three years. We are now trading just shy of 0.06 and a new trend is now emerging,” he stated.
“If BTC would remain at current levels and ETH/BTC were to rise to its next resistance level near 0.085, that would mean a price of $4,900 in USD for ETH,” said de Kempenaer.
Noble also noted that he was watching this ratio, but provided a more bullish assessment for ether.
“If BTC is at $60k, ETH should be trading at $6,000. In our view, the ETH BTC ratio should be around 0.10 at a minimum. The recent bottom in the metric is 0.02 and is currently at 0.056.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.Source