• ETH on the verge of the massive rally, analysts predict.
  • The initial technical barrier is created by a psychological barrier of $200.00.

Ethereum (ETH) has been gaining ground for three days in a row. The coin hit an intraday high at $173.58, but retreated to $172.16 by the time of writing. Despite the downside correction, ETH/USD is still nearly 3% higher on a day-to-day basis. Ethereum's market capitalization has increased to $18.9 billion, while an average daily trading volume is registered at $11 billion. 

Notably, only 23% of Ethereum accounts are in the money at the current price, intotheblock statistics show. It means that the price should go much higher before ETH investors are able to book some profits.

Accumulation phase gives way to massive growth

In the past months cryptocurrency industry participants have been accumulating some major coins, including Ethereum, which creates a perfect precondition for a strong bullish cycle that may kick in in the nearest future, a popular crypto Twitter analyst, Bitcoin Jack (@BTC_JackSparrow) predicts. He believes that many major coins are ready to rise against Bitcoin.

He explains in the recent tweet:

The alt market vs $BTC is looking more and more like it will finally pop and confirm a 6+ month accumulation. Could be a cyclic bottom. That means having the right alts is something you should plan for. Many majors look primed like $XMR $ZEC $ETH $LTC.

If his assumptions are correct, then the recent price recovery may transform into a full-fledged bullish trend.

ETH/USD: technical picture

From the technical point of view, ETH/USD support is created by SMA200 daily on approach to $157.00. The short0term trend remains bullish as long as the coin stays above this price. However, if it is broken, the sell-off may gain traction and push the price towards psychological barrier of $150.00 followed by $144.60 (SMA50 daily).

On the upside, a sharp move above the recent high of $173.58 will open up the way towards $180, and, ultimately, to $200.00. Once it is cleared, the upside momentum will gaine traction with the next focus on SMA200 weekly (currently at $236.00). The price has been moving below this level since August 2019.

ETH/USD daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD may retest SMA200 weekly if $6,500 is not retaken any time soon.

BTC/USD is hovering around $6,300, down 1% on a day-to-day basis. The first digital coin has been moving within a short-term bearish trend amid expanding volatility.

More Bitcoin News

Ripple Price Prediction: XRP/USD short-term bulls aim at $1780

Ripple (XRP) has been range-bound recently. The third-largest coin settled above $0.1700, which is a good signal, but the further upside seems to be limited so far.

More Ripple News

ETH/USD locked in a range; short-term recovery capped by $134.40

ETH/USD is changing hands at $132.00, mostly unchanged both on a day-to-day basis and since the beginning of Wednesday. The second-largest digital asset has been moving within a short-term bearish trend amid high volatility. 

More Ethereum News

Triangle pattern breakout hints BCH/USD rally beyond $250

Bitcoin Cash price if dealing with increased selling activity on Wednesday just like the other major cryptocurrencies. BCH/USD is down 1.33% on the day while the price hovers above the initial short term support at $214.

More Bitcoin Cash News


Bitcoin Weekly Forecast: Coronavirus will either kill Bitcoin or make it stronger

Bitcoin is about to finish the second positive week in a row. The first digital coin has recovered from $5,680 and came close to psychological $7,000 during the week.

Read the weekly forecast