- 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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Cardano price could trap impatient investors before triggering an explosive move to $0.505
Cardano price shows a consolidation below a stable support level and has yet to reveal a directional bias. The ongoing range tightening will likely resolve as the US markets head to a fresh start this week.
LUNA Classic price hints at a 25% crash as Do Kwon under Red Notice from Interpol
LUNA Classic price reveals a bearish outlook that could unfold over the course of this week. A minor run-up seems plausible, but it is just a move to squeeze the bulls. Therefore, market participants should be ready for a quick reversal.
Ethereum Price Prediction: Assessing the possibility of a post-Merge rally
Ethereum price trades at $1,323 on Sunday, several days after sliding to $1,200. It was a surprise that the largest smart contracts token would give up most of its gains during and after the much-publicized Merge. On-chain data shows a significant reduction in the Ethereum Supply.
Why Chainlink price could lose momentum at $8.00
-637336005550289133_XtraSmall.jpg)
Chainlink price is among the few crypto assets in the green on Sunday. The smart contacts’ price feed oracle token defied the bear market this week to post 23.7% gains. As discussed earlier in the week, the V-shaped pattern matured at LINK brushed shoulders with $8.00.
Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation
Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.