• Mo. Jun 21st, 2021

Ethereum eyes new all-time high after bears unable to sink ETH below $900

Vonalphagenics

Jan 14, 2021


Bitcoin’s (BTC) price saw a significant 28% correction during the week from $41,000 to $30,000. At the same time, Ether (ETH) also saw a drop of 32%. The recent high for ETH/USD was $1,350 — or about $70 shy of the all-time high — while the recent low was seen at $910.

January has seen heavy volatility in the crypto markets. The sentiment has been flipping from euphoria to depression and back again. However, the market is still in a bull market even if another correction occurs.

In that regard, it’s just a matter of time until a new all-time high is made for Ether, following Bitcoin’s footsteps.

Healthy correction for ETH

ETH/USD 1-week chart. Source: TradingView

Ether corrected to the first level of interest at the 0.35–0.382 Fibonacci level. Traders often use this Fibonacci level to anticipate corrections.

Frequently, corrections only occur at the 0.35–0.382 Fibonacci level or the 0.5 Fibonacci level.

This happened in ETH’s case, as the $850 to $925 area is confluent with a previous resistance point. This resistance point is found in 2018 during the multimonth rally from $350 to $900. This slight run-up became the final bounce before the market reversed south.

But now, the $900 region has flipped support, which means that more upside likely. As often stated, if an asset drops by 30% in an uptrend, it may be worth looking into.

Levels to watch after all-time high is broken

ETH/USD 1-day chart. Source: TradingView

If the correction has ended, continuation is likely to occur with a new impulse wave. In that regard, ETH/USD would be looking at new highs, which can also be determined using the Fibonacci extension tool.

Critical for continuation would be a breakout above the recent high at $1,350. Personally, I’d expect to see some more consolidation before continuation, but a new impulse wave is definitely on the table.

If such a continuation of the impulse wave occurs, the next targets are found at the recent all-time high of 2017 (around $1,420), but also at $1,600 to $1,650 and $2,050 to $2,100. The latter targets are constructed using the Fibonacci extension tool.