Ethereum, Stellar and Uniswap move north in lockstep
The three analysed altcoins Ethereum (ETH), Stellar (XLM) as well as the DeFi project Uniswap (UNI) impressively show the bullish sentiment on the entire crypto market. However, the futures on Bitcoin (BTC) expiring today should also lead to larger movements in the altcoins.
- Ethereum (ETH): Another attack on the all-time high is imminent
- Price (ETH): 1,425 US dollars (USD) (previous week: 1,214 USD)
- Resistances/targets: 1,420 USD, 1,482 USD, 1,591 USD, 2,057 USD, 2,811 USD, 3,565 USD
- Supports: 1,228 USD, 1,042 USD, 922 USD, 837 USD, 747 USD, 675 USD, 624 USD
The Ether price is benefiting from two developments these days. In addition to the price breakout of Bitcoin (BTC), currently fuelled by a tweet from Elon Musk, investor interest in DeFi projects continues by Bitcoin Lifestyle to be a reason for the rise. The moving average EMA20 (red) again acted as a good support in recent trading days and increases the chances of a renewed breakout attempt above the all-time high at USD 1,482.
Bullish variant (Ethereum)
Ethereum continues to be bullish as already mentioned in the last analysis. Yesterday, Thursday 28 January, the EMA20 (red) once again acted as a springboard for a rise towards the north. As long as this moving support is used again and again for new buying, an attack on the all-time high at USD 1,482 can be firmly planned. If Ethereum can dynamically jump above this resistance level in the next few trading days, the price should immediately push through to the 200 Fibonacci extension at USD 1,591. In order to attack higher price targets in the medium term, a retest of the area around USD 1,425 is to be advocated starting from this level. Whether a direct march above USD 1,591 or a consistency test of the breakout level is carried out should crystallise in the following. A breach of the USD 1,591 level on a daily basis will lead the Ether price directly towards the 261 Fibonacci extension at USD 2,057.
However, initial profit-taking at this resistance level cannot be ruled out. If the ether price also sustainably surpasses this resistance, a further price increase of 35 per cent to the 361 Fibonacci extension at USD 2,811 is conceivable. If the overall market moves upwards and the price rally does not come to an abrupt end, a march through to USD 3,277 and a maximum of USD 3,565 is realistic in the coming months. From a chart perspective, these two resistance levels are the next important price targets. From the current price level at USD 1,425, this corresponds to a price increase of 150 percentage points. If investors manage to break through these resistance levels with sustained interest, the Ether price could already march through to the 561 Fibonacci extension at USD 4,319 and at most to the 661 Fibonacci extension at USD 5,073 in the first half of 2021. Whether and how quickly these marks will be reached in 2021 is still written in the stars, but it is very conceivable.
Bearish variant (Ethereum)
At present, another price collapse is rather unlikely, as the interest in the second-largest cryptocurrency is too great. However, if there is a correction in the Ether price, the bulls can be expected to put up more resistance at USD 1,228. The cross support of the EMA20 and the green upward trend line represents a solid support. If bears still manage to break through this price level dynamically, a correction in the direction of the previous week’s low at USD 1,042 is conceivable. If the low at USD 1,042 is also undercut with a vengeance, this would be a first break in the trend that should not be underestimated and could lead to further price declines. As a result, the ether price will fall back to 922 USD. This is the super-trend in the daily chart, which will once again be difficult to break.