- 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.
Ethereum intraday key levels
Spot rate: $1,345
Relative change: 9
Percentage change: 0.7%
Bitcoin extends correction as Ethereum sees ‘picture perfect’ rejection at all-time highs
Bitcoin (BTC) stayed closer to $60,000 on Oct. 22 after the largest altcoin Ether (ETH) failed to cement new all-time highs.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
ETH all-time high? Blink and you’ll miss it
Data from Cointelegraph Markets Pro and TradingView ETH/USD just match its record $4,380 on Bitstamp before seeing a harsh rejection.
Traders watched in anticipation as Ethereum appeared to follow Bitcoin to historic new levels, only to face immediate resistance and fall sharply back into a lower range.
Trader and analyst Rekt Capital called the event a “picture perfect rejection.”
At the time of writing, ETH/USD circled $4,150, preserving $4,000 as support with the exception of a flash dip which immediately followed the all-time high rematch.
ETH/USD 1-day candle chart (Bitstamp). Source: TradingView
Against Bitcoin, Ethereum fared better, with the ETH/BTC pair having bounced near lows last seen in late July.
Bitcoin could see “additional topside euphoria”
Having similarly failed to hold significantly higher levels, Bitcoin itself took an extended break as overheated markets cooled their excitement.
Funding rates were returning to normal on Friday, having reached a state reminiscient of the blow-off top from April.
Bitcoin funding rates chart. Source: Bybt
As with open interest, however, these were not as frenzied as the Q2 rush, which produced the $64,900 all-time high in place until this week.
“This means there is possibly still room for additional topside euphoria but we are at levels that are starting to stretch the market,” crypto trading firm QCP Capital commented in its latest market update.
Ethereum Forecast and ETH/USD Analysis October 22, 2021
Ethereum are trading at 4188 and continue to move within the framework of a strong rise and a bullish channel. The capitalization of the Ethereum cryptocurrency at the time of the publication of the forecast is $481,387,860,771. Moving averages indicate a short-term bullish trend for Ethereum. Prices went up from the area between the signal lines, which indicates pressure from buyers and a potential continuation of the rise in the asset value from the current levels. At the moment, we should expect an attempt to develop a correction in the value of the coin and a test of the resistance level near the 3345 area. Where again should we expect a rebound and a continuation of the rise in the Ethereum rate with a potential target above 4955.
Ethereum Forecast and ETH/USD Analysis October 22, 2021
An additional signal in favor of the growth of ETH/USD quotes will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the option to raise the cryptocurrency will be a fall and a breakdown of the level of 3105. This will indicate a breakdown of the support area and a continued fall in ETH/USD quotes below the level of 2705. With the breakdown of the resistance area and closing of quotes above the level of 4505, we should expect confirmation of the development of a bullish movement in Ethereum.
Ethereum Forecast and ETH/USD Analysis October 22, 2021 suggests an attempt to correct and test the support area near the level of 3345. Where can we expect a rebound and the continuation of the rise of the ETH/USD cryptocurrency to the area above the level of 4955. An additional signal in favor of the rise of Ethereum will be a test of the line trend on the relative strength index (RSI). Cancellation of the growth option for the digital currency will be a breakdown of the 3105 area. This will indicate a continued fall in the digital currency with a potential target below the level of 2705.
Here’s What Will Trigger the Next Big Ethereum Rally, According to Top Crypto Analyst
A popular crypto trader is predicting what needs to happen for Ethereum’s (ETH) price to surge even further.
In the TechnicalRoundup newsletter, the pseudonymous analyst DonAlt says ETH is likely to underperform during a Bitcoin (BTC) breakout but will overperform later if the market rides “a multi-month uptrend.”
“As Bitcoin gets sufficiently pumped (very technical term) risk trickles down to lower market cap assets, including Ethereum.
From a technical point of view, the market is in a range between support (low-mid $3000s) and resistance ($4000).
Given the relative strength of the market and the proximity to new all-time highs, a range breakout is more likely than a range breakdown.
Generally, triple tops aren’t compelling resistance structures, especially those that form at prior all-time highs.”
Ethereum is trading at $4,189 at time of writing, up more than 16% in the past week, according to CoinGecko. The second-biggest crypto asset by market cap hit its all-time high of $4,356 in mid-May.
DonAlt thinks Bitcoin currently offers traders more upside than downside.
“If you long Ethereum and you’re right, you’ll probably make less money than longing Bitcoin. If you long Ethereum and you’re wrong, you’ll probably lose more money than longing Bitcoin.
Our conviction on this isn’t incredibly high, but the likelihood of a Bitcoin-dominant breakout is one worth considering.
In our view, the time to rotate into Ethereum will come once the breakout dust has settled. A large puke in Ethereum/Bitcoin would be a good time to start looking for punts.