Strong year-end rally for Ethereum, Polkadot and Cardano
The price rally of the cryptocurrency Bitcoin (BTC) has increasingly spread to the overall market in the last few trading days, causing Ethereum (ETH), Polkadot (DOT) and Cardano (ADA) to reach new highs for the year.
Ethereum (ETH): 841 US dollars by the end of the year
- Price (ETH): 724 US dollars (previous week: 649 USD)
- Resistances/targets: 747 USD, 804 USD, 841 USD, 925 USD, 1002 USD, 1,314 USD
- Supports: 678 USD, 640USD, 580 USD, 550USD, 531 USD, 515 USD, 489 USD
Overarching price target at 841 USD within reach.
As predicted in our last analysis on 18 December, the The News Spy Ethereum price continues to move in only one direction. After a temporary setback to the super-trend at USD 550 on 23 December, the Ether price was able to overcome the high for the year at USD 678 and form a new high at USD 747. This means that the maximum price target for 2020 at USD 841 is within reach and could still be reached in the last 2 days of the year if the year closes on a friendly note.
Bullish variant (Ethereum)
The price rally in Ethereum is still in full swing. After the retest of the support from the EMA50 (orange) and the super trend at USD 550, the price development continues to be bullish. With six green daily candles in a row, the Ether price is continuing its upward flight. If the price manages to stabilise above USD 678, the chances of a breakout above the high for the year at USD 747 remain good. If the Ether price overcomes this resistance, a rise to the strong resistance area between USD 803 (361 Fibonacci extension) and USD 842 is likely.
If the leading cryptocurrency Bitcoin (BTC) also continues to trend bullish and overcomes the psychological mark of USD 30,000, it is also conceivable that Ethereum will march through to USD 925 and USD 1,002 in the coming weeks. If the 461 Fibonacci retracement is also overcome on the daily closing price, new price targets will be activated for the coming months. The 127 Fibonacci extension of the overriding movement at USD 1,049 and the 138 Fibonacci extension at USD 1,135 are only possible intermediate targets in the direction of the maximum price target for the next 3 months at USD 1,314. This is the 161 Fibonacci extension, which the Ether price could reach if Bitcoin rises to 40,000 USD.
Bearish variant (Ethereum)
If, on the other hand, the Ether price cannot sustainably break out above USD 747 and instead bounces more clearly to the south, the support levels at USD 678USD and USD 640 (EMA20) (red) will first come into view again. Renewed attacks by the bulls can already be expected here. If the ether price unexpectedly falls below these support levels, a relapse to 580 USD is to be expected. The super trend currently runs along this support. If this support is also dynamically undercut, Ethereum should initially correct towards USD 550 and USD 531.
If the bulls cannot stabilise Ethereum here either, a price decline to the EMA100 (yellow) at 515 USD is likely. A short retest of the maximum bearish price target at 489 USD would also be conceivable. At the latest, bullish investors can be expected to enter the market again at this multiple support consisting of the striking high from September 2020 and the green upward trendline. If this area is sustainably abandoned, the Ethereum price rally would be stopped for the time being. As long as the Ether price does not form a clear reversal formation, price targets on the upside continue to be favoured.