|

Only one resistance barrier ahead of Ethereum price may prevent it from surging to $1,000

  • Ethereum price established a new 2020-high at $635 but got quickly rejected.
  • There seems to be a robust resistance area around $610 preventing the digital asset from climbing higher.

Ethereum has experienced a significant rally in the past several weeks thanks to the upcoming Eth2 update. On top of that, Visa has just recently announced the support of USDC payments, which will work on the Ethereum network. Unfortunately, the smart-contracts giant continues facing a vital resistance level at $610.

Can Ethereum price finally crack the last resistance barrier before $1,000?

It seems that whales have been steadily buying ETH coins since mid-November going from 967 to 1,008 currently. This significant increase in large investors shows they are highly interested in Ethereum despite its price increasing.

eth price

ETH Holders Distribution chart

On the daily chart, Ethereum price briefly rose above the former 2020-high at $623 hitting $635.7 but got quickly rejected dropping to $560. The area around $610 is the strongest resistance point. A breakout above this level can quickly drive Ethereum price to new highs, potentially at $1,000.

eth price

ETH/USD daily chart

The In/Out of the Money Around Price chart (IOMAP) seems to show a similar picture as it indicates there is a strong resistance area between $592 and $609 where 2.16 million ETH were purchased by 847,320 addresses. 

eth price

ETH IOMAP chart

Above this area, there is practically no more opposition in comparison to the support below, which adds credence to the $1,000 potential price target for Ethereum. However, ETH is facing other bearish indicators.

eth price

ETH/USD weekly chart

On the weekly chart, the TD Sequential indicator has presented a sell signal which has proven to be exceptionally reliable in the past. Validation of this call would drive Ethereum price to the support level at $488.

Author

Lorenzo Stroe

Lorenzo Stroe

Independent Analyst

Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.

More from Lorenzo Stroe
Share:

Editor's Picks

Ripple and Stellar outlook: XRP and XLM rebound amid mixed signals

Ripple and Stellar extend their recovery on Thursday after finding support at key technical levels. However, mixed derivatives and on-chain data for both altcoins suggest that traders remain cautious and have yet to show strong conviction in a sustained rebound. Derivatives data shows a mixed and cautious outlook among traders.

Crypto Overview: Bitcoin steadies above $76,000 amid Fed rate hike – Privacy coins rally

Bitcoin holds steady around $76,000 at press time on Thursday, showing near-term strength as the US Federal Reserve raised interest rates by 25 bps. Privacy coins, Zcash and Dash, post double-digit gains over the last 24 hours, emerging as top performers. Bitcoin hovers around $76,200 on Thursday holding steady after a 3% decline on Tuesday.

Bitcoin slips below $76.7K True Market Mean amid weak demand — Glassnode
Bitcoin (BTC) has slipped below its recent trading range and the True Market Mean at $76,700, but the top crypto has remained relatively resilient despite a failed Clarity Act Senate vote, FOMC rate hike and a broader altcoin sell-off.
Bitcoin, crypto market see muted activity following FOMC rate hike

Bitcoin (BTC) traded above $76,000 on Wednesday as the Federal Reserve raised its benchmark interest rate by 25 basis points, bringing the federal funds target range to 3.75%-4.00%. The unanimous 12-0 decision marked the Fed’s first rate hike since July 2023.

Bitcoin: BTC retreats as macro headwinds grow
Bitcoin (BTC) remains under pressure, down over 4% this week and trading around $76,900 at the time of writing on Friday. Institutional demand shows signs of weakness as spot BTC Exchange Traded Funds (ETFs) are on track to end their three-week inflow streak, recording nearly $500 million in net outflows through Thursday.