Warp speed to $2,000? Watch these levels as Ethereum nears all-time high

0
50

Bitcoin (BTC) is currently approaching $ 40,000 after seeing massive gains in the first seven days of 2021. This is a 100% increase over the previous all-time high in December 2017. In other words, the price level that Bitcoin took three years to reach almost doubled in just a few weeks.

ETH, BTC price gains, January 2021. Source: Digital Assets Data

Meanwhile, the price of Ether (ETH) has risen by more than 100% in three weeks. However, the all-time high of around $ 1,420 set on January 13, 2018 has yet to be exceeded.

Hence, the main question is whether altcoins will underperform, keep pace, or outperform BTC in the near future. Let’s look at the ETH price charts to get an idea of ​​where this “old season” may lead in the near future.

Ether hits the second Fibonacci level for a potential spike

ETH / USD 3-day chart. Source: TradingView

The three day chart for Ether has shown a vertical rally over the past few weeks that has resulted in several key levels being hit. In this case, the Fibonacci expansion tool is helpful in determining the next potential spike.

Often this indicator is used to identify various top structures in pricing, but it can also be used to measure the likely strength of the next momentum move.

In this case, the most recent high of the momentum move was $ 470. The current low was USD 90 in March 2020. Based on this information, the Fibonacci level of 1.618 was found at $ 750 while the Fibonacci expansion of 2.618 was found at $ 1,150. The latter also merges with the all-time high region where Ether is currently located.

The next low brings $ 2,700 into play

ETH / USD 1 week chart. Source: TradingView

The weekly chart must be set to the logarithmic scale to perform this analysis. However, if the Ether chart hits its high in the near future – this could also be after a rally towards $ 1,500 and a new all-time high – the same Fibonacci expansion can be pulled over the recent pulse train.

The current high is at $ 1,230 while the current low is at $ 310. Thus, the Fibonacci expansion finds potential top structures at USD 1,800 and USD 2,700 to USD 2,800.

The higher the current wave of impulses, the greater the chances of a new rally.

Which support levels are critical?

ETH / USD 1 week chart. Source: TradingView

The weekly chart shows that the market is accelerating. However, investors and traders should expect a possible correction soon as nothing is rising in a straight line.

In this case, Fibonacci can also be used to define areas of support. The primary support zone to test is the region between $ 775 and $ 825, the Fibonacci level from $ 0.35 to $ 0.382. This support zone is in line with the rejection of this level in April 2018.

If this level does not provide enough support, another correction towards the USD 600 order block is likely. Such a correction would be extremely painful for the market and would cause the price to drop more than 50%, which currently seems unlikely.

Important short term support for ETH / USD

ETH / USD 1 hour chart. Source: TradingView

The lower timeframe graph shows an obvious increase, with the trendline drawn continuously serving as support.

In this way, the trendline itself is a massive indicator of further upward and downward momentum. If this trendline does not hold support, downward pressure seems inevitable.

In this case, if the trendline does not hold, the $ 1,120-1,130 range should apply. If not, Ether is back in the previous range and a test at $ 950 is in the cards.

However, the bullish fall is a new all-time high for the price of ether if that trendline remains intact.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.