The price of Ethereum (ETH) against the U.S. dollar (USD) hit a high of $215.35 on Bitstamp this morning, the highest price it has seen in over six months. Along with the majority of the crypto market, the Ethereum price retraced soon after and is now holding steady in the $208 range.
Ethereum has been trading below $227 (the SMA50 weekly) since June last year but is now moving closer to it, reinforcing the bullish trend reversal. Should it cross above the SMA50 we’ll likely see accelerated upward movement. This past weekend’s news of a fresh release of tools and information by the Enterprise Ethereum Alliance (EEA) helped catapult Ethereum past the $200 mark and should help to ensure it enjoys further gains.
Long-term, $300 is clearly a significant psychological resistance level but the market’s current strong sentiment might just be enough to break through it. On the downside, strong support at $198 and $187 could be enough to keep the Ethereum price afloat should a reversal occur.
As Bitcoin continues its meteoric rise, crypto trading pairs are getting trodden underfoot. ETH/BTC is currently holding in at 0.0256 up from an earlier low of 0.0245. Should the upward rally continue, ETH will initially face weak resistance at around 0.0269 with stronger resistance at 0.0275 (EMA50).
The old support level of 0.0229 still stands with stronger support at 0.0200 if it falls below that.
ETH/USD short positions have halved since early May and are now at almost their lowest point in 12 months, whereas longs have been steadily increasing today after a severe dip this weekend. This further cements the increasing commentary amongst crypto enthusiasts that an altcoin season is incoming.
A case for $400?
One analyst on Trading View sees a strong case for Ethereum to revisit the same highs of $400 against the U.S. dollar. The level corresponds to similar highs that the coin hit in both June and September of 2017.
The theory is backed-up by trader Casidom’s analysis indicating the ascending triangle pattern which ETH/USD has already broken out of and should accelerate upwards of $300.
Overall, technicals still keep ETH in bullish territory but not with nearly as much positive sentiment as Bitcoin. Historically though, these kinds of rallies are almost always punctuated by an altcoin rally, which is usually instigated by Ethereum. For this reason, altcoin maximalists will surely have their eyes on the Ethereum price in the coming days.