Ethereum price shoots above $700: What’s next for ETH?
The Ethereum price has risen above $730 for the first time since May 2018. Following the breakout in ETH’s price, traders are becoming more optimistic about its near-term trajectory.
The Ethereum price is currently out of control. It almost seems like a slumbering giant has finally awakened, but what Bitcoin News Trader exactly is behind the rapid price rise in Ethereum’s native cryptocurrency ETH and what else can we expect?
Some of the possible reasons that can be used to explain the sudden rally are mainly the following two important factors for the Ethereum price:
Let’s now take a closer look at what exactly this has and could continue to have an impact on.
Ethereum price continues to form higher highs
In technical analysis, the “higher high” pattern often indicates strong momentum, as it shows that each new high is higher than the previous one.
The Ethereum price has been steadily rallying over the past week, maintaining the “higher high” formation. Cryptocurrency trader Scott Melker said:
An endless series of higher highs and higher lows, with the recent low being confirmed by a new higher high. I consider this pattern to be the ‘Stairway To Heaven’.
On 28 December, Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, similarly said that $1,200 to $1,300 is likely for ETH if the Ethereum price stays above $470. He wrote:
In general, Ethereum still has a very bullish outlook as it has consistently formed higher highs and higher lows. This has not changed. As long as $470 holds, the next run will take the markets towards $1,200-1,300 or a new ATH in Q1 2021.
A breakout against bitcoin is crucial
Since the Bitcoin price surpassed its previous all-time high at around $20,000, Ethereum has stagnated against Bitcoin. Therefore, for Ether to experience a renewed rally, a breakout against Bitcoin is crucial.
Santiment analysts announced that ETH miner balances are at a two-year low and supply on exchanges is also decreasing.