June 22, 2021

Ethereum Sees 30% Breakout, Nearing All-Time Highs

2 min read

Buy orders have continually accumulated behind Ethereum over the previous few days, suggesting a possible rate surge.

Ethereum Ready for New All-Time Highs

While Bitcoin prices are up more than 160% from their 2017 peak of nearly $20,000, Ethereum rates have underperformed. Ethereum has been secured a slow however consistent uptrend since mid-January that just recently saw it reach a new record high of $1,940.

Regardless of ETH’s uninspired rate action compared to other cryptocurrencies, it appears that momentum is building. ETH prices are roughly 37% higher than they were during their 2018 all-time high.

Charts Suggest Further Gains

Ethereum appears to have actually created an increasing wedge within the 4-hour chart. One trendline can be drawn around the swing highs while another appears to sign up with the swing lows.

This kind of technical formation is frequently thought about a turnaround pattern, however it may result in more gains given the marketplace’s momentum. An increase in upward pressure that presses ETH above the psychological resistance at $2,000 might be substantial enough to lead to a 33% breakout to $2,700.

Ethereum US dollar price chart

ETH/USD on TradingView Address Distribution Suggest Purchases When taking a look at ETH address circulation data, the bullish thesis holds. The variety of addresses with 10,000 ETH to 100,000 ETH has actually increased by more than 9 % since the start of the year. More than 92 whales with$ 19.40 million to$ 194 million worth of Ether in their portfolios have actually gone into the network in this period.

Ethereum Holders Distribution by Santiment
Ethereum Holders Distribution by Santiment Digital properties management firm Grayscale has actually also gone into a purchasing spree, adding more upward pressure to Ethereum. Given that early February, the business has actually considerably increased its holdings and added another 20,095 ETH ($38 million) in the previous 24 hours.

As long as the $1,740 assistance level continues to hold, the buying pressure behind Ether may be significant enough to enable it break out of the increasing wedge in an upward instructions. Stopping working to hold above this critical barrier could trigger a steep correction towards $1,250.

Disclosure: At the time of composing, this author owned Bitcoin and Ethereum.