The second cryptocurrency Ethereum (ETH) surged in tandem to Bitcoin, lifting past known barriers as investors interpret earlier the US Presidential election final results. A surge in the demand of ETH may kick start a rally to fresh highs. The ETH/USD pair began uptrend afresh from Tuesdays low of $370.50 to trade past upside barriers at $420. As more buyers join the trend ETH/USD resumes a sharp rise toward $500. At the time of writing, the Ethereum price is trading at $414 after a significant spike thanks to Vitalik’s ETH 2.0 updates. Ethereum has gained nearly 7.05% in the past 24 hours and 6.58% on a week-to-week basis. Ranking 2nd on the Coinmarketcap table, Ethereum has a present market cap of $46.64 billion and $15 billion in trade volume over the past 24 hours. Vitalik Buterin releases the ETH 2.0 deposit contract which is the key to the upcoming Proof of Stake consensus protocol and also the first physical implementation. The upgrade comes with a countdown set for December 1, 2020.
*The ETH/USD pair began uptrend afresh from Tuesdays low of $370.50 to trade past upside barriers at $420
*At the time of writing, Ethereum price is trading at $414 after a significant spike thanks to Vitalik’s ETH 2.0 updates
*Vitalik Buterin releases ETH 2.0 deposit contract which is the key to the upcoming Proof of Stake consensus protocol
Resistance Levels: $500, $450, $420
Support Levels: $400, $370, $335
ETH/USD Daily Chart: Ranging
ETH/USD Daily Chart
As seen on the daily chart, Ethereum started a fresh increase to clear the $400 resistance level after finding strong support near $370. At the moment, Ethereum is changing hands above the MA 50 and MA 200 meaning that it is sitting on robust support zones, giving credibility to the bullish optimism. Ethereum must hold the immediate support at $400 to sustain the uptrend towards the $420 resistance level.
Once the $420 hurdle is out of the way, ETH can quickly retest $450 and $500. On the downside, Price action below the $400 anchor may lead to a breakdown likely to touch $390 and $370 coinciding with the MA 50 support. A push below the MA 50 may trigger a touch down on the ascending trend line at $350.
ETH/USD 4-Hour Chart: Ranging
ETH/USD 4-Hour Chart
As seen on the 4-hour chart, Ethereum is sustaining its move past the MA 50 to trade at its present price of $414. An increase in demand for ETH would see buyers positioning themselves to take advantage of the run-up to $420 which will spur a sharp rise toward $500.
If bulls fail to defend the critical $400 support, ETH price may test the 4 hour MA 50 support near $390 and 4 hour MA 200 presently situated at $380. The ETH/USD pair is only bullish while exchanging beyond the $390 level, key resistance is found at the $400 and the $415 levels. If the ETH/USD pair trades beneath $390, the $370 and $335 support levels may be tested by sellers.
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