One trader shared the chart below after the latest leg of ETH’s move higher, which brought it as high as $330. The analysis indicates that Ethereum is trading in a “harmonic” pattern that will result in it soon topping at the macro resistance around $380.
As crazy as this may sound now, this analysis predicts that Ethereum will fall under $100 in 2021. The trader also used other tools, such as fractals and trendlines to indicate that ETH may actually be on track for such a retracement.
As reported by Bitcoinist previously, the asset is facing some other factors suggesting a pullback is in order. Blockchain analytics firm Santiment wrote:
“With $ETH peaking at $316 yesterday, the @santimentfeed DAA vs. Price YTD model shows that the surplus of daily active addresses transacting has finally been equalized by its price. For the first time since June 17th, there is now a deficit of DAA, which indicates the potential of a short-term pullback.”
There are also trend indicators suggest the asset’s rally has been exhausted by historical standards.
Despite this bearish technical case, Ethereum’s crucial technical upgrade, ETH2, is purportedly drawing close.
There were some uncertainties about the launch date two weeks ago, yet the asset’s founder and many other prominent stakeholders attempted to clear the air. Case in point: the final testnet before the public launch is expected to launch in the weeks ahead.
The launch of ETH2 is expected to act as a positive catalyst for this market.
TheBitcoinNews.com is here for you 24/7 to keep you informed on everything crypto. Like what we do? Tip us some BATSend Tip now!
Article comments