- Using Ethereum’s price action history, analysts plot trend lines to identify next support/resistance levels and potential cycle top.
- A move up that coincides with ETH’s previous cycle top puts the target at $19,518.
- Experts believe that of the top 10 cryptocurrencies, ETH is close to price discovery.
- Bitcoin and Ethereum funding rates are far from excessive.
Ethereum has posted better than 900% gains over the past year, offering traders and holders a high risk-adjusted return compared to other altcoins. Ethereum’s historical price action has paved the way for a run to $19,000.
Ethereum proponents predict potential cycle top
Analysts have used Ethereum’s historical price action to plot logarithmic regression trend lines and have identified support and resistance levels for ETH prices. Support and resistance are considered key levels to identify the change in the direction of an altcoin’s price trend.
An analyst may point to a specific price or area and interpret the degree of significance of a level, setting a price target for the altcoin. Logarithmic Regression Rainbow is an indicator that uses Ethereum’s historical price action. Experts plot logarithmic regression trend lines to identify support and resistance.
The longer Ethereum takes to climb to the next resistance level, the higher the potential market cycle top.
At $3,730, ETH had the potential to test resistance at $6,433. A move up to the previous cycle top would imply that the next target for ETH is $19,518.
Logarithmic Regression Rainbow for Ethereum.
Ethereum is the closest to price discovery among the top ten altcoins by market capitalization. In contrast to the general sentiment among market participants that argue the cryptocurrency market has witnessed high Bitcoin and Ethereum funding rates, funding rates remain relatively low for the two assets.
Funding rates are the periodic payments to long and short traders, and they are based on the difference between the asset’s price on perpetual contracts and spot markets. High funding rates coincide with market euphoria and cycle tops.
Once Ethereum enters price discovery mode, funding rates are expected to increase.
Ashwath Balakrishnan, a research associate at Delphi Digital, commented on the state of Ethereum’s funding rates in a recent tweet.
People are saying the market is gassed based on $BTC and $ETH funding rates recently
— Ashwath Balakrishnan (@ashwathbk) October 18, 2021
Yes, funding is high compared to a week ago. Care to zoom out?
Funding can go bonkers once we hit uncharted territory pic.twitter.com/x97tdaeQnn
FXStreet analysts have evaluated the ETH price trend and predicted that the altcoin is ready to break out. Analysts have set a target of $5,200 for ETH price.
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